FT: US Hegseth's broker targeted defence fund ahead of Iran action

A broker for US Defence Secretary Pete Hegseth attempted to make a large investment in major defence companies in the weeks leading up to the US-Israeli military action against Iran, Financial Times reports.

According to the report, three people familiar with the matter said Hegseth’s broker at Morgan Stanley contacted BlackRock in February about investing in the asset manager’s Defence Industrials Active ETF, a Nasdaq-listed fund launched in May 2025. The investment did not proceed because the fund was not yet available for Morgan Stanley clients to purchase.

The FT did not specify how much discretion the broker had to make investments on Hegseth’s behalf, or whether Hegseth was aware of the broker’s actions.

The report comes amid broader scrutiny of trades in financial and prediction markets ahead of major US policy decisions under President Donald Trump. Some of these decisions have been preceded by well-timed market activity, raising questions among experts about potential leaks of sensitive information.

Shortly after the report’s publication, Pentagon spokesperson Sean Parnell posted on X, calling the allegations “entirely false and fabricated.” He added, “Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment,” and demanded a retraction of the story.

The report comes amid heightened scrutiny of financial and prediction-market trades made ahead of major US policy decisions, as some experts question whether market activity may reflect advance knowledge of government actions.

Hegseth, a prominent architect of the Iran war, has publicly advocated for US military action. Last week, speaking at an event in Tennessee on March 23, President Donald Trump credited Hegseth as being the first senior official in his administration to call for strikes on Iran, saying, “Pete, I think you were the first one to speak up, and you said, ‘Let’s do it because you can’t let them have a nuclear weapon,’” while Hegseth sat beside him.

By Vafa Guliyeva