Pentagon denies Hegseth’s broker wanted to invest in arms before war
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WASHINGTON: The United States Department of Defence has called for the withdrawal of a newspaper report alleging that a broker linked to Defence Secretary Pete Hegseth sought to make a significant investment in weapons companies ahead of the war with Iran, Al Jazeera reported.
Pentagon spokesman Sean Parnell demanded an “immediate” retraction after the Financial Times reported that a wealth manager for the defence secretary approached BlackRock to make a multimillion-dollar investment in a defence-focused fund in the weeks leading up to the conflict.
According to the Financial Times, Hegseth’s broker at Morgan Stanley ultimately did not proceed with the investment in the exchange-traded fund — which includes holdings such as Lockheed Martin and Northrop Grumman — because it was not yet available for purchase at the time, citing three unnamed sources.
“This allegation is entirely false and fabricated. Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment,” Parnell said in a post on social media.
“This is yet another baseless, dishonest smear designed to mislead the public.”
Hegseth and his department “remain unwavering in their commitment to the highest standards of ethics and strict adherence to all applicable laws and regulations”, Parnell said.
Al Jazeera could not independently confirm the Financial Times report.
“We stand by our reporting and have included a Pentagon spokesperson’s response in the article,” an FT spokesperson said.
The Defence Department did not immediately respond to a request for comment sent outside of usual business hours.
BlackRock declined to comment. Morgan Stanley did not immediately respond to inquiries.
The report comes amid scrutiny of well-timed trades in financial and prediction markets that have prompted speculation that figures with insider knowledge may be profiting off of US President Donald Trump’s war plans.
While the Financial Times reported that the attempted investment by Hesgeth’s broker did not go ahead, the defence chief would not have made money on such a purchase in the month since the war began.
While the iShares Defence Industrials Active ETF has risen more than 25 per cent over the past year, it has fallen nearly 13pc since the US and Israel launched strikes on Iran on February 28.
Published in Dawn, April 1st, 2026
