Pete Hegseth reportedly clashed with Navy Secretary John Phelan over shipbuilding and whether to comply with a federal judge's order before abruptly dismissing him, according to a new report. The firing marks the second major leadership shake-up at the Pentagon during the ongoing Iran war.
Clash over judicial order
Hegseth and Phelan butted heads when Phelan refused to ignore a federal judge's ruling that said punishing Senator Mark Kelly for reminding military officers of their constitutional duty to not follow illegal orders would violate his First Amendment rights, Fox News reported. Hegseth wanted Kelly, a retired Navy captain and former astronaut, brought back onto active duty and stripped of his rank. In February, Hegseth appealed the judge's ruling blocking his efforts to reprimand Kelly, an Arizona Democrat.
Shipbuilding disputes
Phelan also sparred with Hegseth over how to revive the Navy's lackluster shipbuilding program, among other issues that strained their relationship. President Donald Trump described Phelan as a long-time friend who he hoped would rejoin the administration in the future. Trump told reporters that Phelan had some conflict, not necessarily with Hegseth, but with others mostly over building and buying new ships.
Phelan released a statement saying leading the Navy had been the honor of his life, acknowledging that leadership at that level is not without challenges, with decision-making slowed by caution, competing equities, and internal friction.
Sudden dismissal
Phelan's 13-month tenure ended abruptly on Wednesday evening. A Pentagon spokesperson released a cryptic statement that Phelan would depart effective immediately without explanation. Later, a senior administration official told The Independent that Phelan had been fired, with President Trump and Secretary Hegseth agreeing new leadership at the Navy was needed.
Beyond clashes over judicial orders, Phelan stirred controversy due to his close friendship with Trump. The Harvard Business School graduate and founder of a Palm Beach investment firm raised millions for Trump's re-election campaign and was tapped to lead the Navy despite no military service. They kept in close contact, chatting at Mar-a-Lago and texting late at night about shipbuilding.
Senior Pentagon officials became irritated when Phelan pitched his new battleship proposal directly to Trump, bypassing Hegseth. His plans for a new class of battleships may have contributed to his ouster, as Trump wanted a new fleet of warships but Phelan struggled to deliver on an aggressive and nearly impossible schedule.
Context of Iran war
The firing comes as the U.S. Navy enacts a blockade in the Strait of Hormuz amid the ongoing war with Iran, which has engulfed the Middle East in violence and led to a surge in global fuel prices. Multiple polls show most Americans oppose the conflict. Earlier in the war, Hegseth fired Army Chief of Staff Gen. Randy George, wanting someone who would implement his and Trump's vision for the Army. Since taking the helm 15 months ago, Hegseth has dismissed roughly 34 military officers, including four-star generals and admirals.



