Defense Secretary Pete Hegseth's continued leadership in managing the ongoing Iran conflict and advancing the administration's fiscal 2027 defense budget request underpins trader expectations that he will remain in the role through year-end. In mid-May, Hegseth and Joint Chiefs Chairman Gen. Dan Caine testified before House and Senate Appropriations subcommittees, outlining strategy, munitions needs, and the $1.5 trillion Pentagon budget while addressing bipartisan questions on the conflict's endgame and costs. Recent public activities, including meetings with South Korean officials and welcoming sailors from carrier strike groups, further signal institutional stability. Earlier reports of internal staff changes have not disrupted his confirmation of key priorities or engagement with Congress, consistent with historical patterns where cabinet officials retain positions during active military operations absent formal resignation or removal announcements.