Iran's Oil Minister Mohsen Paknejad resigned for personal reasons, with President Masoud Pezeshkian accepting the departure on Sunday amid a tightening U.S. naval blockade that has halted the country's crude exports.

Paknejad, who took the post in August 2024, had requested to step down earlier but the president had rejected those requests until now. Pezeshkian appointed Hamid Bovard, managing director of the National Iranian Oil Company, as acting oil minister.

The move comes as U.S. pressure has driven Iran's oil exports to zero. Treasury Secretary Scott Bessent stated that no Iranian crude shipments remain at sea and the country will generate no oil revenue this week. Iran's central bank governor previously noted that exports had effectively fallen to zero.

The blockade forms part of broader U.S. efforts during the ongoing conflict with Iran. This has led to a sharp drop in foreign exchange earnings, record lows for the rial, and inflation exceeding 70 percent in some reports.

Bovard, already under U.S. sanctions since February 2025 for his role in Iran's petroleum sector, now oversees an industry facing production cuts and domestic fuel shortages. He pledged to maximize output using new strategies despite the constraints.

Iran has relied on informal networks to evade sanctions, but recent allegations of unpaid revenues from these arrangements added to the pressure on Paknejad. The resignation highlights the effectiveness of sustained U.S. sanctions and naval enforcement in targeting Tehran's primary revenue source.