Pentagon Shake-Up: US Navy Chief Phelan Steps Down Amid Iran Standoff

The US Department of Defense on Wednesday announced that Secretary of the Navy John C. Phelan has stepped down with immediate effect, with Under Secretary Hung Cao set to assume the role as Acting Secretary of the Navy.

The decision comes amid rising uncertainty over an Iran–US ceasefire and as the US Navy continues its blockade of the Strait of Hormuz.

Phelan’s exit was confirmed by Chief Pentagon spokesperson Sean Parnell, who thanked him for his service. “We wish him well in his future endeavors. Under Secretary Hung Cao will become Acting Secretary of the Navy,” Parnell wrote on X.

Phelan is the second senior official to step down from the Pentagon since the war began on February 28. Earlier in April, Defense Secretary Pete Hegseth asked US Army Chief of Staff General Randy George to step down.

Trump’s nominee: Who is Phelan?

Phelan was nominated by US President Donald Trump ahead of his second term in the Oval Office. Prior to taking charge as Secretary of the Navy, he was a businessman and campaign donor.

He was also associated with efforts to modernise US shipbuilding under the administration, according to a Bloomberg report.

Phelan comes from a non-military background, with most of his connection to the armed forces stemming from an advisory role with Spirit of America, a non-profit organisation that supports defence efforts in Ukraine and Taiwan, reports said.

Why did Phelan step down?

According to a report by The New York Times, Phelan’s removal comes days after Hegseth was also asked to step aside and is attributed to growing friction over management style and staffing decisions.

One key area of disagreement was the Navy’s proposed expansion effort, dubbed the “Golden Fleet.” The project reportedly involved significant spending on new warships, including a proposed “Trump-class” battleship. However, Pentagon officials were said to be dissatisfied with the execution plan.

Reports also suggest that Phelan had a strained relationship with his assistant and Under Secretary Hung Cao, who will now serve as Acting Secretary.

Critical moment for the US Navy

Phelan’s departure comes at a crucial time for the US Navy, which finds itself in a standoff with Iran in the Strait of Hormuz. The US Navy currently has three aircraft carriers deployed in or heading toward West Asia.

The Trump administration has said that US forces remain prepared to resume military operations against Iran in the event of further escalation with Tehran.

The Navy also maintains a significant presence in the Caribbean, where it is engaged in operations targeting drug trafficking networks.