FT: Pentagon Chief’s Broker Sought Investments in Defense Firms Ahead of Iran War

The personal broker of U.S. Secretary of War Pete Hegseth tried to make multimillion-dollar investments in major defense companies before the war with Iran.

The Financial Times reported, citing three sources familiar with the situation.

According to the report, in February, a representative of the minister at Morgan Stanley discussed with BlackRock the possibility of investing in a fund focused on defense industry companies (Defense Industrials Active ETF).

This investment fund includes shares of the largest Pentagon contractors, including Lockheed Martin, RTX, and Northrop Grumman.

However, the investments discussed with Pete Hegseth’s broker ultimately did not take place, as the fund, launched last May, was not yet available for clients of Morgan Stanley.

The article does not specify how much freedom the broker had to make investment decisions on behalf of the Pentagon chief, nor whether the Secretary was aware of the broker’s actions.

After the publication, Sean Parnell, the chief spokesperson for the U.S. Department of War, stated that the story was “completely false and fabricated” and demanded a retraction.

According to the United States Department of State, total defense sales increased by nearly 4% compared to last year’s figure of $318.7 billion.

The main drivers of demand were rearmament programs in Europe, the war in the Middle East, and tensions in East Asia.

Direct commercial sales reached $226.8 billion, showing a 12.9% increase. This fully offset an 11.47% decline in government-to-government procurement programs, whose volume fell to $104.4 billion over the year.

The Donald Trump administration began reforming export controls to speed up the delivery of ordered weapons to allies.

In April 2025, the President signed an order updating the list of weapons that had previously been available only through government channels, giving customers more opportunities to purchase equipment directly from American companies.