US Department of Defense demands retraction of report alleging broker sought multimillion-dollar investment for Hegseth.
Published On 31 Mar 2026
The United States Department of Defense has demanded the retraction of a newspaper report alleging that a broker for defence chief Pete Hegseth attempted to make a large investment in weapons companies in the run-up to the war on Iran.
Pentagon spokesman Sean Parnell demanded the “immediate” retraction on Monday after The Financial Times reported that a wealth manager for the defence secretary contacted BlackRock about making a multimillion-dollar investment in a defence-related fund in the weeks leading up to the war.
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Hegseth’s broker at Morgan Stanley ultimately did not go ahead with the investment in the exchange-traded fund, whose holdings include Lockheed Martin and Northrop Grumman, because it was not yet available for purchase at the time, The Financial Times reported, 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.
The Defense Department did not immediately respond to a request for comment sent outside of usual business hours.
The Financial Times and Morgan Stanley also did not immediately respond to inquiries.
BlackRock declined to comment.
The report comes amid scrutiny of well-timed trades in financial and prediction markets that have fuelled 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 Defense Industrials Active ETF has risen more than 25 percent over the past year, it has fallen nearly 13 percent since the US and Israel launched strikes on Iran on February 28.
