Iran's oil minister, Mohsen Paknejad, has resigned, with President Masoud Pezeshkian accepting his departure, citing personal reasons. This comes as Iran faces a severe economic situation, marked by inflation running at 85%.
The country's economy contracted by 10% in the first three months of the year. An overall drop in oil receipts has led to a substantial shortfall in foreign exchange earnings, contributing to one of the biggest drops in the value of the rial since 1979.
The rial is currently trading more than 10% lower than a month ago, largely attributed to a US naval blockade affecting Iran's oil sales. The dollar reached a record high of 269,000 tomans this week, having risen 12% since 9 September.
Allegations have also emerged that an intermediary trust involved in selling Iranian oil abroad owes millions of dollars in export receipts to the state. A report by the Farhikhtegan newspaper claimed a trust set up under Paknejad's watch owed the National Iranian Oil Company nearly $2bn in revenues.
The mayor of Tehran, Alireza Zakani, has announced a six-month freeze on the prices of 12 basic items, including sugar and rice, with national government reportedly set to study his plan. Ministers have also indicated a second rise in public sector wages is likely.