Iran's oil minister resigns, president appoints replacement

ISTANBUL: Iranian Oil Minister Mohsen Paknejad has resigned, Iran's state-run Tasnim news agency reported Sunday, citing a presidential official, according to Anadolu Ajansi.

Mehdi Tabatabaei, deputy head of communications at the Iranian president's office, said President Masoud Pezeshkian has accepted Paknejad's resignation.

Hamid Bovard has been appointed acting oil minister to oversee the ministry's affairs, Tabatabaei added.

No reason was given for Paknejad's resignation, which came amid unprecedented US sanctions on Iran, particularly targeting its oil sector.

Bovard previously served as the head of the state-run National Iranian Oil Company and has spent most of his career working in oilfield operations.

US Treasury Secretary Scott Bessent said Saturday that Iran has no oil shipments remaining at sea and will generate zero oil revenue this week.

On Aug 25, the US Treasury Department announced the launch of Operation Economic Outcast, a broad campaign aimed at completely isolating Iran from the global financial system.

The US and Israel launched a war against Iran on Feb 28. Tehran responded with missile and drone attacks across the region and effectively closed the Strait of Hormuz, a strategic route for energy supplies. The US military later imposed a naval blockade on Iranian ports.

Efforts to end the war have continued since a June framework deal which seeks to pave the way for a final peace agreement covering navigation through the strategic waterway and Iran's nuclear programme.