President Trump is removing his Secretary of the Navy as the Strait of Hormuz blockade continues to serve as a critical chokepoint in the ongoing conflict with Iran.

John Phelan is stepping down effective immediately, with Undersecretary Hung Cao set to take over as Acting Secretary of the Navy, the Pentagon announced Wednesday in an unexpected move. No explanation was provided for Phelan’s departure.

“Secretary of the Navy John C. Phelan is departing the administration, effective immediately,” Pentagon spokesman Sean Parnell announced. “We wish him well in his future endeavors.”

Just a day earlier, Phelan appeared at the Navy’s annual conference in Washington, D.C., where he outlined plans to accelerate shipbuilding efforts and later spoke with reporters.

“One of the things we are going to do in our contracting is if you beat schedule, you’re going to get a bonus, but you’re going to share it with the workers,” Phelan said.

Beyond his government role, Phelan is known as a prominent art collector and previously led a large private investment firm.

A major Republican donor, he has contributed more than $1.8 million toward GOP campaigns. His name also surfaced on a flight log tied to Jeffrey Epstein’s private plane, though only for a single trip from London to New York, and he has denied any knowledge of Epstein’s crimes.

Cao, a Navy veteran and former Virginia Senate candidate who was unsuccessful in his bid, is considered a favorite of the president.

The Navy secretary is responsible for overseeing more than 900,000 personnel and managing a budget exceeding $210 billion annually.

In recent weeks, however, the position has been heavily focused on directing the Strait of Hormuz blockade, a mission led by the Navy.

The strategic waterway remains effectively sealed as the United States and Iran continue to face off without progress in negotiations.

Cao, who fled Vietnam as a child and later settled in Virginia, graduated from the U.S. Naval Academy and served 25 years in the military, including deployments to Iraq, Afghanistan, and Somalia.

When announcing Cao’s nomination as undersecretary, Trump highlighted both his background and service record.

“Hung is the embodiment of the American Dream. As a refugee to our Great Nation, Hung worked tirelessly to make proud the Country that gave his family a home,” the president said.

Cao was confirmed to the undersecretary position by a 52-45 Senate vote. He has also voiced strong views on military leadership, arguing that the country needs “alpha” leaders in its ranks.