Mohsen Paknejad, the Minister of Oil, resigned after his resignation was accepted by Seyyed Mahdi Tabatabai, Deputy for Communications and Information at the Medical Office, due to criticisms and controversies regarding oil sales and his performance in this area. With this change, the number of ministries managed by caretakers in the Pezeshkian government has reached three.
Reasons for Resignation and Criticisms
Pezeshkian, in the decree accepting Paknejad's resignation, asked him to work within the framework of the government's general policies and in cooperation with the cabinet to achieve goals and solve the country's problems. Criticisms of Paknejad's performance, particularly regarding oil sales through intermediaries known as "trustees" and the non-return of oil revenues, were raised by members of parliament and experts.
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Mohammad Amir, Secretary of the Article 90 Commission of the Parliament, criticized the increase in the number of trustees during Paknejad's tenure on September 1, stating that his responses regarding the non-return of oil money did not convince the representatives. He also mentioned pursuing Paknejad's impeachment after the country's situation stabilizes. Trustees are recognized as intermediaries for oil sales and the transfer of revenues under sanctions.
Management of Oil Sales and Challenges
Iran International reported on the allocation of large oil shipments to four indebted trustees and referred to the role of Mohammad Javad Baavand, appointed by Paknejad as a special assistant for monitoring oil trade, in managing this network. After the criticisms were published, the Board on September 15 denied a report about the allocation of an oil contract to Hossein Aghayari and stated that oil transactions are conducted according to regulations and under the supervision of oversight bodies.
Hadi Qavami, a member of parliament, also stated on October 3, one day before Paknejad's resignation announcement, that $700 million of oil money related to national and tourism banks has not returned through this intermediary. Before announcing his resignation, Paknejad responded to a question about oil revenues, stating: "The money from the sold oil is being collected."
Consequences of Resignation and Sanctions
With Paknejad's resignation, the government must introduce proposed ministers for all three ministries to the parliament for a vote of confidence. The U.S. Treasury had sanctioned Paknejad on March 14, 2025, stating that he oversees the export of tens of billions of dollars in oil. These sanctions were imposed with the aim of bringing Iran's oil exports to zero, and consequently, some companies and oil tankers involved in transferring Iranian oil to China were also targeted.
This managerial change in the Ministry of Oil occurs at a time when the Ministry of Defense and the Ministry of Intelligence are still being managed without ministers following the deaths of their ministers in U.S. and Israeli attacks. It remains to be seen what effects this change will have on the oil sales process and the management of the oil market.
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