Iranian oil minister resigns as NIOC chief takes acting role

Iranian Oil Minister Mohsen Paknejad resigned and was replaced on an acting basis by Hamid Bovard, chief executive of the National Iranian Oil Company, according to reports on October 4 and 5. The change places Bovard in charge of the oil ministry as Iran faces war, sanctions and restrictions on its oil exports.¹²³

An oil executive takes charge

The Iranian presidential office announced Paknejad’s departure and Bovard’s appointment, with the decision also carried by state media. Bovard was appointed acting oil minister by presidential decree and will oversee the ministry, according to the reports.¹²³

Bovard leads the National Iranian Oil Company. Middle East Eye, which spells his name Hamid Bord, said he had occupied multiple high-ranking roles at the company, including leadership of its southern oil and offshore oil subsidiaries.¹²³

Paknejad had served as oil minister since August 2024. The Hindu reported that Iran’s president accepted his resignation, while The Straits Times identified the president as Masoud Pezeshkian and said he had initially asked Paknejad to remain in office.¹²

Reason for departure remains unclear

Iranian state media did not provide a reason for the resignation, according to The Hindu. Middle East Eye cited government spokesperson Mehdi Tabatabaei as saying Paknejad had resigned for personal reasons “a long time ago”.²³

The Straits Times separately reported that Paknejad had earlier offered to resign “due to personal issues”, but that the request was rejected. According to that account, Pezeshkian accepted the departure after Paknejad continued to press to leave and commended his service. Those details were not independently confirmed by the other reports.¹

War and pressure on oil exports

The change at the ministry comes during what The Hindu described as a seven-month war between Iran and the United States that is placing pressure on Iran’s economy. Middle East Eye linked conditions surrounding the resignation to the war and US sanctions, reporting long queues at petrol stations.²³

The Straits Times reported that the United States and Israel launched strikes against Iran in February and described the Strait of Hormuz as a focal point of the conflict. It said Tehran subsequently obstructed commercial shipping and fired on vessels accused of crossing without authorisation, while the United States imposed a counterblockade on Iranian ports intended to stop oil exports. These claims were reported by that outlet alone in the dossier.¹

Before the strikes, about one-fifth of global oil and liquefied natural gas passed through the Strait of Hormuz, according to The Straits Times. Separately, Paknejad said payments for oil already sold were continuing to arrive and were expected to continue.¹²