Pete Hegseth's Broker Attempted To Make Defence Investments Before Iran War

Ahead of the US-Iran war, which began on February 28, a broker for US Defense Secretary Pete Hegseth attempted to make large-scale bets in major defence firms, according to The Financial Times.

However, the Pentagon has refuted such reports.

Hegseth's broker at the global investment firm Morgan Stanley contacted BlackRock in February about making a multimillion-dollar investment in its iShares Defense Industrials Active ETF, as per The FT.

ETF, which boasts of nearly $3.1 billion in assets, counts companies such as RTX Corp, — formerly called Raytheon — Lockheed Martin and Northrop Grumman among its largest holdings, as per BlackRock data.

In the last month, defense industrials active ETF has lost 12.4%, according to LSEG data.

Meanwhile, the FT noted that the investment discussed by Hegseth’s broker as the fund was not yet available for Morgan Stanley clients to buy during that period. It was also not known if the broker had found another defense-related investment.

In a recent tweet, Pentagon Chief Spokesperson Sean Parnell refuted such claims, dubbing them as “entirely false and fabricated,” and demanding the FT retract the article.

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Parnell said that neither Hegseth nor any of his representatives approached BlackRock about any such investment.

“This is yet another baseless, dishonest smear designed to mislead the public,” he noted.

Meanwhile, the US-Israel conflict with Iran has entered into its fifth week, with no clear indications of de-escalation.

The US Marines have arrived in the region, with the Washington Post reporting that the Pentagon was “preparing for weeks of ground operations in Iran.”

Trump on Monday stated the U.S. will obliterate Iran’s electric generating plants, oil wells and take over Kharg Island if the strategically vital Strait of Hormuz is not “immediately” reopened.

However, he changed his stance to possibly halting military strikes on Iran even if the crucial maritime chokepoint of Strait of Hormuz will remains majorly

Simultaneously, the US Marines have arrived in the conflict-ridden region, with the Pentagon “preparing for weeks of ground operations in Iran," citing The Washington Post report.