Iranian oil minister Mohsen Paknejad resigned on Sunday.
Resignation Amid Export Halts and Depleted Reserves
Fortune reported that Iran loaded no oil at its export terminals in September, which had not happened since the 1979 revolution. Just hours before his resignation, Paknejad maintained publicly that oil revenues were still arriving. Yet shipping data from Kpler indicated that the country has relied on crude stored on tankers outside the U.S. naval blockade since mid-July.
Kpler estimated that Iran’s offshore storage dropped from 90 million barrels in mid-July down to roughly 29 million barrels by early September. Analysts at Kpler project these remaining reserves could run out by mid-October.
Paknejad, who had served as the oil minister of the OPEC member state since August 2024, departs as the nation faces long queues at fuel stations due to the Middle East conflict. Tabatabaei, the communications head for President Masoud Pezeshkian’s office, stated that Paknejad had previously submitted resignations for personal reasons that the president did not accept, though the president finally accepted them on Sunday.
Strait of Hormuz Closures and Diplomatic Standoffs
Ghalibaf dismissed ongoing U.S. proposals delivered via mediators, declaring that unilateral demands will no longer be accepted.
Contrasting Tehran’s hardline stance on the waterway, Kpler data showed that neighboring countries continue to move approximately 13.1 million barrels per day of oil and fuel through or around the region—reaching nearly 80% of pre-conflict levels—largely via ship-to-ship transfers and bypassing pipelines. Today, 40% of the volume moves through pipelines that avoid the strait. Meanwhile, Iranian Foreign Minister Seyyed Abbas Araghchi insisted that military confrontation or new sanctions offer no resolution, asserting that only negotiated terms will suffice.
Tensions persist as Washington and Tehran remain far apart in negotiations. The United States has presented proposals through a mediator following a seven-day roadmap submitted by Tehran for the reopening of the strait.
Frequently Asked Questions About the Iran Oil Crisis
Who replaced Mohsen Paknejad as oil minister?
Hamid Bovard, who serves as the managing director of the state-owned National Iranian Oil Company, was appointed as the interim oil minister by presidential decree following Paknejad’s resignation.
Why did Mohsen Paknejad step down?
State media initially did not provide reasons for the departure, but Reuters reported that Paknejad resigned due to pressure on the economy of the country exerted by the seven-month war between Iran and the USA.
When are Iran’s remaining oil shipments projected to run out?
Shipping tracking firm Kpler estimated that Iran’s remaining offshore crude reserves, which dropped from 90 million barrels in July to 29 million barrels in September, could be exhausted by mid-October.
What is Iran’s current stance on the Strait of Hormuz?
Parliament speaker Mohammad Bagher Ghalibaf stated that the Strait of Hormuz will remain closed until seven specific conditions listed in the Islamabad Memorandum are met.
According to BeInCrypto charts, the global benchmark Brent crude is priced at $101.93.