A broker linked to Pete Hegseth reportedly explored making a multimillion-dollar investment in major defense companies weeks before the US and Israel launched military action against Iran, according to a new report. The allegation has been strongly denied by the US Department of War, which called the claim “false and fabricated.”
What Pentagon Said About Allegations Against Pete Hegseth
Responding to the report, Assistant to the Secretary of War for Public Affairs Sean Parnell dismissed the claims and demanded a retraction. Parnell shared a report by Financial Times, which cited three individuals familiar with the matter.
“This allegation is entirely false and fabricated. Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment. This is yet another baseless, dishonest smear designed to mislead the public,” Parnell wrote on X.
He further added, “We demand an immediate retraction. Secretary Hegseth and the Department of War remain unwavering in their commitment to the highest standards of ethics and strict adherence to all applicable laws and regulations.”
This allegation is entirely false and fabricated. Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment. This is yet another baseless, dishonest smear designed to mislead the public.
We demand an immediate retraction.… https://t.co/Su8hGlBOhL
— Sean Parnell (@SeanParnellASW) March 30, 2026
What Are The Allegations Against Pete Hegseth?
According to the Financial Times, Hegseth’s broker at Morgan Stanley contacted BlackRock in February to discuss a potential multimillion-dollar investment in the asset manager’s Defense Industrials Active ETF.
The reported outreach came shortly before the United States launched military strikes on Iran as part of a broader campaign involving Israel.
However, the outlet noted that the investment never materialised. The ETF fund, launched in May last year, was reportedly not yet available for purchase by Morgan Stanley clients at the time the discussion took place.
The report did not specify how much authority the broker had to make investment decisions on Hegseth’s behalf. It also did not indicate whether Hegseth was aware of the broker’s reported outreach or investment discussions.
Pete Hegseth Among Strong Supporters of Iran War
Hegseth has been one of the most outspoken advocates of President Trump’s war against Iran. The president himself recently suggested that Hegseth appeared disappointed at the prospect of the conflict ending soon.
“You know, the only two people that were quite disappointed, I don’t want to say this, but I have to,” Trump said during remarks in the Oval Office last week.
“I said, ‘Pete and Razin Caine, I think this thing is going to be settled very soon,’ and they go, ‘Oh, that’s too bad.’”
Also Read: When Will Iran War End? Netanyahu Breaks Silence On Timeline As Trump, Rubio Give Big Update
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
