A broker representing Pentagon Secretary Pete Hegseth reportedly attempted to execute a substantial investment in weapons stocks shortly before the United States and Israel commenced their war against Iran. Hegseth has been an outspoken proponent of this military action.

Alleged Multimillion-Dollar Defense Stock Inquiry

Citing three anonymous sources, The Financial Times reported on Monday that Hegseth's broker, working through Morgan Stanley, reached out to BlackRock in February. The inquiry concerned a multimillion-dollar investment in BlackRock’s Defense Industrials Active ETF.

This contact occurred just weeks before the US launched military action against Tehran, which began on February 28. The fund in question reportedly includes major defense contractors such as RTX, Lockheed Martin, Boeing, and Northrop Grumman.

Internal Flagging and Investment Failure

The report indicated that the broker's inquiry, made on behalf of the "high-profile potential client," was flagged internally at BlackRock. However, the investment ultimately did not materialize.

The reason cited for the failed transaction was that the specific defense ETF was unavailable for purchase by Morgan Stanley clients at that particular time. Although the ETF has seen a decline of over 12% in the past month, the alleged attempt to make the largest investment in the weapons industry has raised significant concerns.

Concerns Over Insider Trading and Market Manipulation

The reported action has fueled worries that officials within the Trump administration might be leveraging inside knowledge to profit from the ongoing conflict. Richard Nephew, a former anti-corruption coordinator at the US State Department, commented on the situation.

Nephew stated, "You know, back when the gave a damn about anti-corruption, this is something we would've seen as a 'no no,'" suggesting a serious breach of ethics.

Economist Justin Wolfers also weighed in, writing that "in a functional democracy, he would offer his resignation tonight."

Official Denials and Hegseth's Role in the Conflict

A spokesperson for the Pentagon vehemently denied the story, labeling it "entirely false and fabricated." The spokesperson insisted that neither Hegseth nor any of his representatives ever contacted BlackRock regarding such an investment.

Pentagon spokesperson Sean Parnell further demanded an "immediate retraction" from The Financial Times, calling the report "yet another baseless, dishonest smear designed to mislead the public."

Hegseth's Pro-War Stance

Hegseth has become known as the most vocal and aggressive supporter of the Iran war among US officials. President Donald Trump has publicly acknowledged Hegseth's role.

Trump claimed that Hegseth was the first adviser to "speak up" in favor of the assault during internal decision-making. Furthermore, Trump suggested Hegseth desires the conflict to continue, noting that Hegseth seemed disappointed when the President predicted a swift end to the war.

Trump told reporters last week, "I don’t want to say this, but I have to... I said, Pete and General Razin’ Caine, this thing is going to be settled very soon, and they go, ‘Oh, that’s too bad.’"