Pentagon Denies Claims of Insider Investment in Defense Companies Before Iran War

AI Summary

The US Department of Defense has denied a report alleging that a broker for Defense Secretary Pete Hegseth attempted to invest in defense companies before the war on Iran. The Pentagon spokesman called the allegations 'entirely false and fabricated'.

The United States Department of Defense has strongly denied allegations that a broker for Defence Secretary Pete Hegseth attempted to make a large investment in weapons companies in the run-up to the war on Iran. The denial comes after a report by The Financial Times claimed that a wealth manager for Hegseth contacted BlackRock about making a multimillion-dollar investment in a defence-related fund.

Pentagon spokesman Sean Parnell demanded the immediate retraction of the report, stating that the allegations were 'entirely false and fabricated.' He emphasized that neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment.

The proposed investment was reportedly in an exchange-traded fund whose holdings include Lockheed Martin and Northrop Grumman. However, according to The Financial Times, the investment did not go ahead because the fund was not yet available for purchase at the time.

The report has sparked scrutiny of well-timed trades in financial and prediction markets, fueling speculation that figures with insider knowledge may be profiting from US President Donald Trump's war plans.

Despite the denial, the incident has raised concerns about the integrity of defence-related investments and the potential for insider trading.