A recent report has revealed that a financial broker linked to US Secretary of War Pete Hegseth explored plans to invest millions of dollars in defense-related firms in the weeks leading up to the US-Israel military action against Iran.
According to sources cited by the Financial Times, the broker—operating through Morgan Stanley—approached BlackRock in February with interest in investing in its iShares Defense Industrials Active ETF (IDEF), a fund focused on global defense, aerospace, and security companies.
However, the proposed investment did not go through, as the fund was not yet accessible to Morgan Stanley clients at that time.
The development has drawn attention amid growing scrutiny of financial activities preceding major US policy decisions, particularly those related to military actions. BlackRock’s IDEF fund is designed to capitalize on increased government spending in defense and security sectors during periods of geopolitical tension.
Reports note that several companies included in the fund maintain business ties with the US Department of Defense.
Pete Hegseth, a former media personality, has been a prominent figure in advocating for the military campaign, which began on February 28 during ongoing indirect nuclear negotiations. The conflict has reportedly incurred significant financial costs for the United States, while also triggering retaliatory actions from Iran targeting US interests in the Persian Gulf.
The report adds to ongoing debates over transparency and accountability in financial dealings linked to geopolitical developments.
