National News – US Navy Secretary John Phelan has stepped down from his role with immediate effect, the Pentagon confirmed on Wednesday in Washington, marking a sudden change in leadership within the United States Navy’s civilian command.

Phelan, a businessman appointed in 2025 under President Donald Trump, left his post following reported internal disagreements over naval shipbuilding reforms and broader defence restructuring efforts currently underway within the administration.

His departure comes at a sensitive moment for US defence operations, as the Pentagon continues to push an ambitious modernisation programme for the Navy, including expansion of its fleet and accelerated ship construction targets.

Officials have confirmed that Navy Undersecretary Hung Cao will assume the role in an acting capacity while a replacement is considered.

The resignation adds to a series of recent leadership changes across senior military positions in Washington, raising concerns among defence observers about continuity in strategic planning at a time of heightened international pressure.

The United States remains involved in complex security operations linked to tensions around Iran, particularly in the Strait of Hormuz, a key global oil shipping route where naval presence has been intensified.

Security analysts say the timing of Phelan’s exit could create additional strain on ongoing defence coordination, especially as maritime stability in the Gulf region remains fragile and global energy markets continue to react to geopolitical uncertainty.

While the Pentagon has not given a detailed reason for his departure, sources point to growing friction over the pace and direction of shipbuilding reforms.

Within policy circles, reactions have been divided, with some viewing the resignation as part of a wider restructuring strategy and others interpreting it as evidence of internal disagreements within the defence establishment.