Hegseth’s broker sought to invest millions in arms firms ahead of war against Iran: Report

In the weeks leading up to the US-Israeli military aggression against Iran, a financial broker linked to US Secretary of War Pete Hegseth explored a substantial investment in major military contractors, according to a report published Monday.

Sources cited by the Financial Times said the broker, operating through ⁠Morgan Stanley, contacted BlackRock in February about putting millions of dollars into the firm’s newly launched iShares Defense Industrials Active ETF (IDEF).

The fund, which debuted in May 2025, focuses on global defense procurements, aerospace, and security-related companies.

The investment, however, did not materialize. The fund was not yet open to Morgan Stanley clients at the time, preventing the transaction from proceeding, according to the report.

It has drawn attention amid broader scrutiny of financial transactions and bets in markets preceding major US policy decisions, including the unprovoked and illegal war against Iran.

BlackRock’s IDEF fund is designed to allow investors to “pursue growth opportunities by investing in companies that may benefit from increased government spending on defense and security amid geopolitical fragmentation and economic competition,” according to the company’s website.

Several of the companies in the fund list the US Department of War as a major client.

Hegseth, a former Fox News host, reportedly earned $4.6 million over two years during his tenure at the network and an additional $1 million from speaking engagements.

He has been the key figure in the Trump administration who pushed for this war based on unsubstantiated claims and has defended the actions that have been widely criticized.

The war, which was launched on February 28 in the middle of indirect nuclear talks, has cost the US tens of billions of dollars without achieving any of the stated objectives.

Iranian retaliatory operations have dealt a heavy blow to the US bases and assets in the Persian Gulf region.

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