A broker for U.S. Secretary of War Pete Hegseth looked into making a significant investment in defense companies before the start of the Iran war, according to the Financial Times.
A Pentagon spokesman, however, dismissed the report calling it "entirely false and fabricated."
The Financial Times report states that a broker for Hegseth who worked at Morgan Stanley contacted BlackRock in February. The broker allegedly inquired about making a multi-million investment in iShares Defense Industrials Active ETF.
iShares holdings include RTX Corp, Lockheed Martin, and Northrup Grumman. All three are defense contractors. RTX Corp., for example, produces missiles and interceptors. Lockheed and Northrup are defense and aerospace contractors.
The Pentagon quickly pushed back on the report, saying that it was baseless and demanding a retraction.
"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," Pentagon spokesman Sean Parnell wrote on X.
"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," Parnell stated.
