US Navy Secretary Resigns Amid Hormuz Strait Blockade: What's Going On?

The United States Navy Secretary, John Phelan, has resigned from his position, as announced by the Pentagon on Wednesday.

Pentagon spokesperson Sean Parnell stated via a social media post that Phelan’s resignation is “immediately effective.”

The position, which is largely administrative, will be filled by Deputy Chief of Naval Staff Hung Cao.

Phelan is the latest high-ranking military official to resign in recent months.

He stepped down amid the US-Israel war against Iran and the ongoing US blockade of the Strait of Hormuz.

US Navy authorities have not provided an official reason for the resignation.

However, unconfirmed US media reports mention tensions within US leadership regarding shipbuilding issues as the background to Phelan’s departure.

What are the factors behind Phelan’s resignation?

“On behalf of the Secretary of War and Deputy Secretary of War, we thank Phelan for his service to the Department and the US Navy,” wrote Pentagon spokesperson Sean Parnell. “We wish him the best for his future.”

This announcement comes just weeks after US Defense Secretary Pete Hegseth requested that Army Chief of Staff Randy George resign from his position.

Two other Army officials, General David Hodne and Major General William Green, have also recently been removed from their positions.

Since entering the Pentagon, Hegseth has dismissed more than a dozen senior military officers, including the Chief of Naval Operations and the Deputy Chief of Staff of the Air Force.

According to several sources cited by various US media, Phelan lost his position after clashing with Hegseth over the implementation of President Trump’s shipbuilding initiative.

Why did Trump appoint Phelan as Navy Secretary in the past?

The role of the Navy Secretary is largely administrative, encompassing policy formulation, recruitment, training, and the provision of equipment for the Navy.

The position also oversees budgets and logistics, including the construction and repair of ships and naval military facilities.

John Phelan, a civilian who had never served in the military before, was sworn in as Navy Secretary in March 2025 after being nominated by President Donald Trump in 2024.

Phelan, a businessman, is known as a major donor to Trump’s campaign.

The two appeared together at Mar-a-Lago in December 2025 when Trump announced plans to procure a series of new warships armed and named after him, part of the “Golden Fleet” armada supported by Phelan.

Former US Deputy Assistant Secretary of State Andrew Peek told the BBC that the president clearly wants to expand the country’s merchant and civilian fleet.

“Ultimately, someone will be made the scapegoat for the lack of progress. I think that’s about 30% of the reason,” he said.

“The remaining 70% is that Phelan’s replacement is very well-known to the MAGA support base. I think this is just a replacement with someone more favoured and trusted by the president,” he added.

Who is Hung Cao, Phelan’s replacement?

Phelan’s successor, Hung Cao, has served as Deputy Navy Secretary since October 2025 and is a Navy veteran with 25 years of experience.

In 2024, Cao ran as a US Senate candidate in Virginia with Donald Trump’s support but lost to incumbent Democratic Senator Tim Kaine.

In one campaign debate, he criticised military diversity, equity, and inclusion initiatives.

Speaking about Navy recruitment during the debate, Cao said:

“What we need are alpha males and alpha females who are willing to sacrifice, eat it up, and ask for more. That’s the kind of young people who will win wars,” according to an Associated Press report.

The change in Navy leadership occurs as Trump asserts that the US blockade against Iranian ports will continue despite a ceasefire in the war.

Clashes are still ongoing in the Strait of Hormuz, a vital global trade route that supplies much of the world’s oil, with Iran announcing that it has “seized” two ships in the strait.

White House spokesperson Karoline Leavitt said the president is “satisfied” with the US Navy’s blockade against Iranian ports and assessed that Iran is in a “very weak” position.

Meanwhile, Iran’s negotiation team leader, Mohammad Bagher Ghalibaf, stated on Wednesday that it is “impossible” to reopen the Strait of Hormuz due to “blatant violations of the ceasefire” by the US and Israel.