Pentagon Denies Report: Hegseth Broker Sought Defense ETF Before Iran Action

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Overview

A broker for U.S. Defense Secretary Pete Hegseth reportedly explored a multi-million dollar investment in a defense ETF shortly before planned American military action against Iran. The Pentagon has strongly refuted these claims, calling the report "entirely false and fabricated." The Financial Times reported the initial claims, which have prompted questions regarding information handling and investment timing.

Broker Linked to Hegseth Explored Defense ETF Investment

Reports emerged that a broker associated with U.S. Defense Secretary Pete Hegseth contacted BlackRock in February. The inquiry concerned a substantial investment in the asset manager's Defence Industrials Active ETF. This discussion reportedly took place weeks before U.S. military operations were launched against Tehran.

Pentagon Issues Vehement Denial

Chief Pentagon spokesman Sean Parnell strongly denied the allegations. He stated on X (formerly Twitter) that the story was "entirely false and fabricated" and demanded a retraction. Parnell asserted that neither Secretary Hegseth nor any representatives acting on his behalf approached BlackRock about such an investment.

Investment Did Not Proceed

The Financial Times report indicated that the discussed investment ultimately did not occur. This was reportedly because the fund, which launched in May of the previous year, was not yet available to Morgan Stanley clients. The report did not specify the extent of the broker's authority or whether Secretary Hegseth was aware of the discussions. The incident occurs amid growing attention on financial trades made before significant government decisions.

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