Iran Seizes 2 Ships in Strait of Hormuz; US Navy Secretary John Phelan Departs

Iran seized two ships, the Panama-flagged MSC Francesca and the Liberia-flagged Epaminodes, in the Strait of Hormuz on Wednesday. Iran's Islamic Revolutionary Guard Corps stated the vessels were detained for «operating without required authorization and manipulating navigation systems» and transferred them to Iranian shores. The Greek-operated Epaminodes reported being fired upon off Oman, sustaining damage to its bridge with no injuries.

This escalation occurred amid reports of potential US-Iran peace talks as early as Friday, following President Donald Trump’s extension of a ceasefire. Oil prices rose on Thursday, with Brent crude futures up $1.37 to $103.28 a barrel and West Texas Intermediate futures up $1.52 to $94.48, due to stalled talks and continued restrictions on trade through the Strait of Hormuz, which previously handled 20% of global oil supplies.

Separately, the Pentagon announced on Wednesday that John Phelan, the US Navy’s top civilian official and Secretary of the Navy, is leaving his position immediately. Hung Cao, the navy undersecretary, will serve as acting secretary. Reuters, citing an anonymous source, reported Phelan was fired. This departure follows other high-profile firings by Defense Secretary Pete Hegseth, including Army’s top officer Gen Randy George.