The Trump administration dismissed its top naval official on Wednesday, a move stemming from internal conflicts over shipbuilding rather than the ongoing naval blockade of Iran's Strait of Hormuz. The Pentagon confirmed that John Phelan, a former private investment fund manager and Donald Trump donor, was removed as Navy Secretary. His departure marks the first firing of a service secretary in the Trump administration, occurring the same week Iran's Islamic Revolutionary Guard Corps seized two container ships in the Strait of Hormuz, alleging maritime violations and diverting them to Iranian shores.
However, sources familiar with the situation told the Guardian that the firing was unrelated to wartime conduct. Instead, it resulted from strained relationships with Defense Secretary Pete Hegseth, Deputy Defense Secretary Steve Feinberg, and Phelan's own deputy, Hung Cao, tensions that had been building for months. Additionally, the Pentagon believed Phelan was moving too slowly on shipbuilding reforms personally desired by Trump. An ongoing ethics investigation into the Navy Secretary's office was also reportedly a factor. Feinberg had sought to consolidate all Navy shipbuilding and major acquisition responsibilities, with one source indicating he appears to have succeeded.
According to the New York Times, Feinberg moved to strip Phelan of authority over major shipbuilding programs, a congressional official told the publication. Although the timing of Phelan's removal is unusual, the outcome had been anticipated since October, when Hegseth fired Phelan's chief of staff, Jon Harrison, shortly before Cao's confirmation. That move effectively removed the powerful aide who had helped Phelan restructure Navy offices to sideline Cao and other under secretaries.
Cao, a former Navy officer and Republican Senate candidate who ran against Tim Kaine in Virginia in 2024, aligns more closely with Hegseth's approach to cultural issues within the military. He has been named acting Navy Secretary. Phelan's dismissal adds to a cascade of departures that now includes at least five high-ranking cabinet and military officials since the start of the war with Iran. Three cabinet secretaries have left in four weeks: Kristi Noem from Homeland Security, Pam Bondi as Attorney General, and Lori Chavez-DeRemer from the Labor Department on Monday. Republican senators privately warn of further upheaval.
Politico reported that GOP lawmakers believe Commerce Secretary Howard Lutnick, Director of National Intelligence Tulsi Gabbard, and FBI Director Kash Patel are all at risk of losing their positions. One Republican senator described Trump's mindset as: "He's in a bad mood. He's preparing to really let a lot of them go." Separately, Iran's foreign minister called the US blockade of Iranian ports "an act of war" and a ceasefire violation. The White House dismissed Iran's seizure of two commercial vessels as "piracy," insisting the naval blockade remains "incredibly effective." The Strait of Hormuz, just 34 kilometers wide at its narrowest, handles roughly 20% of global seaborne oil trade. Trump had praised Phelan at the time of his appointment, calling him "one of the most successful businessmen in the country."
