President Donald Trump’s pick to run the Navy is exiting "effective immediately" as the U.S. naval blockade has become a key issue in the war and as Iran grows more aggressive on the waters, seizing two ships on Wednesday.

Pentagon spokesperson Sean Parnell announced Secretary John C. Phelan’s exit Wednesday afternoon without elaborating on what prompted the move. The former Trump campaign donor’s departure comes as Iran tightens its grip over the Strait of Hormuz and as Trump says he will not call off his blockade of Iranian ports.

Phelan had never served in the military and was chosen for the post after being a Trump campaign donor. His resignation comes as Trump promises he won’t call off the U.S. naval blockade of Iran.

A ceasefire between the United States and Iran remains in effect after Trump extended the break in hostilities. But tensions on the water remain high. Iran views the naval blockade as an act of war and has signaled it is holding up further peace negotiations. The president says he’s waiting on the Islamic republic to deliver a "unified proposal" for peace.

The Islamic Revolutionary Guard Corps seized two vessels for alleged maritime violations and escorted them to Iran's shores, according to the semi-official Tasnim news agency. The ships were the first seized since the beginning of the U.S.-Israeli war on Iran began Feb. 28.

As the diplomatic standoff drags on, traffic through the Strait of Hormuz remains significantly below average. The critical shipping lane off the Iranian coast has become a focal point of the war. Iran closed the channel after being attacked, driving up global fuel prices. Average prices for a gallon of gas were just over $4 Wednesday morning, according to AAA.

What Navy records show about new pick to lead US naval forces

Hung Cao, who will replace Phelan as acting secretary of the Navy, is a decorated veteran and former Republican candidate for the U.S. Senate in Virginia.

According to service records obtained by USA TODAY while Cao was running for Senate, he was awarded a Bronze Star and deployed to Afghanistan and Iraq. The Bronze Star is awarded to sailors who distinguish themselves by "heroic or meritorious achievement or service."

His Navy record did not show a Purple Heart award, the commendation given to troops who have suffered wounds from "direct or indirect result of enemy action" that required medical attention, despite Cao making repeated references on the campaign trail to becoming disabled after he was "blown up" in combat and saying he has scars from his military service.

Nor did Cao’s record indicate that he received the Navy’s Combat Action Ribbon, which requires that a sailor "must have rendered satisfactory performance under enemy fire while actively participating in ground or surface combat engagement."

Cao at the time declined to answer specific questions about his military service. He has not claimed to have been awarded a Purple Heart or the Navy's Combat Action Ribbon.

The Navy designated him a "special operations explosive ordnance disposal/dive officer." He retired as a captain in 2021.

Meanwhile, White House Press Secretary Karoline Leavitt reiterated the Trump administration’s demand Wednesday that Iran turn over its stockpile of highly enriched uranium if it wants to end the war.

(Source: USA Today)

Story Date: April 23, 2026