FT: Hegseth broker sought defence fund before Iran attack

According to the Financial Times, a broker linked to US Defence Secretary Pete Hegseth sought to arrange a multi-million dollar investment in the defence sector in the weeks leading up to the US–Israeli attack on Iran.

The Morgan Stanley broker was to contact BlackRock regarding an investment in the Defence Industrials Active fund.

According to the report, the investment ultimately did not materialise as the fund was not yet available to Morgan Stanley clients at the time. The newspaper also did not indicate the degree of discretion the broker had in making the decision, nor whether Hegseth was informed of the activity.

The Pentagon has denied the allegations. Sean Parnell, chief spokesman for the US Defense Department, called the information false. Neither the secretary nor his representatives contacted BlackRock about such an investment.

BlackRock did not comment on the case, and Morgan Stanley did not immediately respond.

The report comes at a time of heightened scrutiny of financial market activity ahead of major policy decisions by Donald Trump’s administration. Some transactions have raised questions about possible leaks.

(reuters, max)