Defense Deals in the Shadows: Uncovering Potential Conflicts

A report suggests that a broker for U.S. Defense Secretary Pete Hegseth attempted to invest in defense companies before military action against Iran, raising scrutiny over potential insider actions. The investment did not proceed as the fund was unavailable. BlackRock and Morgan Stanley declined to comment.

A recent report reveals that a broker for U.S. Defense Secretary Pete Hegseth sought to make a substantial investment in leading defense companies just weeks prior to the U.S.-Israel attack on Iran.

The Financial Times cites sources indicating that this proposed investment involved acquiring shares in BlackRock's Defense Industrials Active ETF. This effort was undertaken by a Morgan Stanley broker in February, shortly before the military operation commenced against Tehran.

The investment, however, never materialized due to the fund's unavailability to Morgan Stanley clients at that time. The situation arises as trading activities are under intense scrutiny, with questions regarding potential information leaks prior to significant policy decisions by the U.S. administration.

(With inputs from agencies.)