A broker for United States defence chief Pete Hegseth attempted to make a big investment in major defense companies in the weeks ‌leading up to the US-Israeli attack on Iran, according to the Financial Times.

The newspaper reported that Hegseth’s broker at banking giant Morgan Stanley approached BlackRock in February about a multimillion-dollar investment in a defence-focused exchange-traded fund. The publication cited three sources familiar with the matter.

The fund, known as the iShares Defense Industrials Active ETF, includes major US contractors such as Lockheed Martin, Northrop Grumman and RTX. It holds about $3.1bn in assets, according to market data.

The reported approach took place weeks before the United States and Israel launched illegal strikes on Iran on 28 February. The investment did not proceed, according to the Financial Times, because the fund was not yet available to Morgan Stanley clients at the time. There is no information if Hegseth’s broker purchased the shares through other brokers.

The Pentagon rejected the claims and called for a retraction. A Financial Times spokesperson said the outlet stands by its reporting.

The episode has emerged alongside broader scrutiny of trading activity linked to major policy decisions by US President Donald Trump. Analysts have pointed to patterns in financial and prediction markets that appeared to anticipate developments in the conflict.

Market performance since the outbreak of hostilities has shown mixed results. The defence-focused ETF referenced in the report has fallen by more than 12 per cent in the past month, despite gains over a longer period.

The illegal US-Israeli war of aggression against Iran has now entered its fifth week. US forces have expanded their presence in the region, with preparations underway for possible extended ground operations, according to reporting by The Washington Post.

Earlier, Republican Senator Lindsey Graham said that the war with Iran will result in a big financial gain for the US “When this regime goes down, we are going to have a new Mideast, and we are going to make a ton of money,” he told Fox News.

Graham linked the conflict to access to oil reserves, stating that Iran and Venezuela together account for a significant share of global supply. He described the situation as “a good investment” in the same interview.

Iran rejected the suggestion. Foreign ministry spokesperson Esmaeil Baghaei accused the United States of seeking control over oil resources and violating sovereignty.

HT