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La$_2$O$_3$Fe$_2$Se$_2$ can be explained in terms of Mott localization insharp contrast with the metallic behavior of FeSe and other parent parentcompounds of iron superconductors. We demonstrate that the key ingredient thatmakes La$_2$O$_3$Fe$_2$Se$_2$ a Mott insulator, rather than a correlated metaldominated by the Hund's coupling is the enhanced crystal-field splitting,accompanied by a smaller orbital-resolved kinetic energy. The strong deviationfrom orbital degeneracy introduced by the crystal-field splitting also pushesthis materials close to an orbital-selective Mott transition. We predict thateither doping or uniaxial external pressure can drive the material into anorbital-selective Mott state, where only one or few orbitals are metallizedwhile the others remain insulating.

La$_2$O$_3$Fe$_2$Se$_2$, a Mott insulator on the brink of orbital-selective metalization