US Navy Secretary fired weeks after Army chief in sweeping shake-up amid Iran war

US Navy Secretary John Phelan has been fired with immediate effect, according to US officials and sources familiar with the matter, marking another major leadership shakeup at the Pentagon during an ongoing conflict involving Iran.

Earlier this month, Hegseth also fired Army Chief of Staff Randy George without explanation, with officials later linking the decision to tensions involving Army Secretary Daniel Driscoll. The Pentagon has also dismissed other American generals, David Hodne and William Green Jr, amid the war.

The Pentagon confirmed his departure in a brief statement, saying he was leaving the administration “effective immediately,” without providing a reason or clarifying whether the decision was voluntary.

Sources said Phelan was dismissed partly due to concerns that he was moving too slowly on implementing shipbuilding reforms aimed at expanding the US Navy’s fleet. They also cited strained relationships with key Pentagon leadership, including Defence Secretary Pete Hegseth, Deputy Defence Secretary Steve Feinberg, and the Navy’s No 2 civilian official Hung Cao, who will now serve as acting Navy secretary.

An ethics investigation into Phelan’s office also contributed to his removal, one source told news agency Reuters.

His exit comes during heightened military activity, with US naval forces enforcing a blockade of Iran amid a tense ceasefire. The Navy has played a key role in stopping Iranian vessels in the Strait of Hormuz, redirecting 31 ships and boarding two others.

According to CNN inputs, tensions between Phelan and Hegseth had been building for months. Hegseth reportedly believed Phelan was too slow in executing shipbuilding reforms and was frustrated by Phelan’s direct communication with President Donald Trump, which he viewed as bypassing the chain of command.

The situation escalated during a White House meeting between Trump and Hegseth focused on shipbuilding. A senior official said Trump, already dissatisfied with slow progress, concluded that new leadership was needed. He instructed Hegseth to “take care of it,” after which Phelan was told to resign or face termination.

Phelan initially sought confirmation, contacting White House officials and eventually meeting Trump at the West Wing, where the president confirmed his removal.

Pentagon spokesperson Sean Parnell said the administration was “grateful” for Phelan’s service and wished him well. The White House backed the decision, stating that both Trump and Hegseth agreed that new leadership was necessary.

Phelan, a billionaire businessman with no prior military experience, had close ties to Trump and helped raise millions for his campaign before being appointed Navy secretary in 2025.

His dismissal makes him the first service secretary appointed under Trump’s current term to be fired. It also adds to a broader pattern of upheaval within the Pentagon under Hegseth, including the removal of senior military officials such as former Joint Chiefs Chairman CQ Brown and other top officers.

Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, called Phelan’s firing “troubling,” saying it reflects “instability and dysfunction” within the Department of Defence.

The leadership change comes as the US Navy faces growing pressure to expand its fleet, particularly in response to China’s rapidly advancing shipbuilding capabilities. The Trump administration has proposed a $1.5 trillion defence budget for fiscal year 2027, including over $65 billion for new warships and support vessels under what officials call the “Golden Fleet” initiative, the largest such request since 1962.

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