Wire flash
PoliticsFT: Pete Hegseth's broker sought to buy defense fund weeks before Iran attack
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
The Financial Times reported on March 30, 2026, that a broker for U.S. Defense Secretary Pete Hegseth attempted to make a multimillion-dollar investment in BlackRock's Defence Industrials Active ETF in February 2026, weeks before the U.S.-Israeli attack on Iran. The investment did not proceed because the fund was not yet available to Morgan Stanley clients. The report, citing three sources, did not clarify whether Hegseth knew of the broker's actions. The Pentagon swiftly denied the allegation, calling it 'false and fabricated' and demanding a retraction. The story emerges amid broader scrutiny of financial and prediction market trades that preceded major Trump administration policy decisions, raising questions about potential information leaks.
Source report
Updated: July 22, 2026 — 02:25 pm IST Source: Reuters
A broker for U.S. Defense Secretary Pete Hegseth attempted to make a multimillion-dollar investment in major defence companies in the weeks leading up to the U.S.-Israeli attack on Iran, the Financial Times reported on Monday (March 30, 2026), citing three people familiar with the matter.
According to the report, Mr. Hegseth’s broker at Morgan Stanley contacted BlackRock in February about investing in the asset manager’s Defence Industrials Active ETF, shortly before the U.S. launched military action against Tehran.
The investment ultimately did not go ahead, as the fund—which launched in May last year—was not yet available for Morgan Stanley clients to purchase.
The FT report did not specify how much discretion the broker had to make investments on Mr. Hegseth’s behalf, nor whether the Defense Secretary was aware of the broker’s actions.
Pentagon Denies Report, Demands Retraction
The Pentagon on Monday (March 30, 2026) rejected the Financial Times report as incorrect and called for a retraction.
“This allegation is entirely false and fabricated,” chief Pentagon spokesman Sean Parnell said on X.
Broader Scrutiny of Pre-Decision Trades
The report on the attempted investment comes amid wider scrutiny of trades made in financial and prediction markets ahead of major policy decisions by U.S. President Donald Trump.
Some of these decisions have been preceded by well-timed bets, prompting experts to question whether information may have leaked ahead of time.
Related Articles:
- Pete said, ‘Let’s do it’: Trump on decision-making over Iran attack
- U.S. Secretary of Defence Pete Hegseth estimates cost of Iran war at $37.5 billion
- No ‘definitive time frame’ for ending Iran war, say Pentagon; seeks $200 billion in additional funds
Source
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Western
Part of this Story
Pete Hegseth's broker sought to buy defense fund before Iran attack: FT report