Tehran:Iranian Oil Minister Mohsen Paknejad has resigned, as reported by Iran's state-run Tasnim news agency on Sunday, citing a presidential official. In response, President Masoud Pezeshkian has accepted Paknejad's resignation.

According to Anadolu Agency, the president's office confirmed that Hamid Bovard has been appointed as the acting oil minister to manage the ministry's affairs. Bovard previously led the National Iranian Oil Company and has extensive experience in oilfield operations.

Paknejad's resignation comes at a time when Iran faces unprecedented US sanctions, particularly targeting its oil sector. These sanctions have impacted Iran's oil exports drastically. US Treasury Secretary Scott Bessent stated that Iran has no remaining oil shipments at sea and will generate no oil revenue this week.

In an effort to isolate Iran from the global financial system, the US Treasury Department launched Operation Economic Outcast on August 25. This campaign aims to cut off Iran's economic connections worldwide.

Additionally, tensions escalated when the US and Israel launched military actions against Iran in February. Iran retaliated with missile and drone attacks, closing the Strait of Hormuz, a key route for global energy supplies. The US responded with a naval blockade on Iranian ports. Peace negotiations have been ongoing since a framework deal in June, seeking a resolution to navigation and nuclear program disputes.