US Navy Secretary John Phelan has left his post immediately, the Pentagon announced on Thursday, with Navy Under Secretary Hung Cao appointed as acting secretary. Pentagon spokesperson Sean Parnell confirmed the departure on social media, stating that the department wished him well in his future endeavors. Phelan was sworn in as Navy Secretary in March 2025, serving just over two months in the role. His abrupt exit has raised questions about leadership stability at the Navy amid a volatile period in the Middle East.
Conflicting accounts have emerged regarding the reason for Phelan's departure. According to a Pentagon spokesperson cited by The Independent, Phelan left due to disagreements with Defense Secretary Pete Hegseth and Deputy Stephen Feinberg over issues including shipbuilding. A senior administration official told The Independent that President Trump and Secretary Hegseth agreed new leadership at the Navy is needed, and that Secretary Hegseth informed Phelan of this news prior to it being made public. However, Euronews reports that no reason was given for the departure, leaving uncertainty over whether it was voluntary or forced. This discrepancy underscores the opaque nature of the decision-making process at the highest levels of the Pentagon.
Phelan, a major Trump donor with no prior military background, had been a controversial figure since his nomination. He addressed the US Navy's annual conference on Tuesday, just two days before his dismissal, and hosted leaders of the House Armed Services Committee to discuss the Navy's budget request. His background also includes a mention in flight logs related to Jeffrey Epstein's plane, though multiple reports note this does not indicate wrongdoing. President Trump had praised Phelan at his swearing-in, saying he would be a tremendous force for Naval service members and a steadfast leader in advancing his America First vision, and that he would put the business of the US Navy above all else.
Phelan's departure comes amid a US Navy blockade of Iranian ports near the Strait of Hormuz, a critical chokepoint for global oil shipments. On Wednesday, Iranian forces seized and attacked three container ships attempting to pass through the strait, according to multiple reports. The attacks have upended global oil markets, with prices continuing to rise as traders assess the risk to supply. The blockade and Iranian actions represent the most serious confrontation between the two countries in years, raising fears of a broader conflict.
The White House has denied reports that the extended ceasefire between the US and Iran expires in a few days. Press secretary Karoline Leavitt stated that the president has not set any deadline and ultimately it is he who decides. This leaves the status of the ceasefire uncertain, as Trump has not publicly clarified his timeline or conditions for a renewed agreement. The lack of clarity adds to the volatility in the region, with both sides signaling readiness for further escalation.
Phelan's exit is the latest in a series of high-level Pentagon firings under Hegseth and Trump. Hegseth previously fired Army Chief of Staff Gen. Randy George, and also dismissed Admiral Lisa Franchetti and General Jim Slife in February 2025. Trump fired General Charles 'CQ' Brown Jr as chairman of the Joint Chiefs of Staff. These moves reflect a broader pattern of reshaping military leadership to align with the administration's priorities, but critics warn they could undermine institutional stability and morale.
Several unknowns remain. The specific disagreements that led to Phelan's departure have not been detailed, and it is unclear whether the Navy's blockade of Iranian ports will continue under acting Secretary Cao. The status of the US-Iran ceasefire remains ambiguous, and the impact of Phelan's departure on the Navy's shipbuilding program is uncertain. No permanent successor has been nominated, leaving the Navy under interim leadership during a critical period.