The case

Ft: Hegseth broker wanted to invest in weapons before the Iran attack

A broker of Pete Hegseth, the US Defence Secretary, attempted a large investment in major defence companies in the weeks before the US-Israel attack on Iran. This was reported in the Financial Times

31 March 2026

Il segretario alla Difesa americano Pete Hegseth con Donald Trump REUTERS

2' min read

Translated by AI

Versione italiana

2' min read

Translated by AI

Versione italiana

A broker of Pete Hegseth, the US defence secretary, attempted a large investment in major defence companies in the weeks before the US-Israel attack on Iran. This was reported by the Financial Times, based on three people with knowledge of the facts: the broker at Morgan Stanley contacted BlackRock in February to evaluate a multimillion-dollar investment in the asset management firm's 'Defense Industrials Active ETF' before the military action against Tehran began. The request, made on behalf of the high-profile potential client, was reported internally to BlackRock.

BlackRock, Morgan Stanley, and the Pentagon declined to comment on the matter, the City newspaper reported. According to BlackRock, the $3.2 billion equity fund, identified by the ticker IDEF, pursues 'growth opportunities by investing in companies that could benefit from increased government spending on defence and security in an environment of geopolitical fragmentation and economic competition'.

Main participations

His major holdings include the defence conglomerates RTX, Lockheed Martin and Northrop Grumman, which count the US Department of Defence among their major clients, as well as Palantir, a company specialising in data integration central to Pentagon strategies. Hegseth is one of the leading proponents of war on Iran and has been one of the most vocal voices within the Trump administration in support of an attack on Tehran, often flaunting American military might.

Unrealised investment

The investment discussed by Hegseth's broker was ultimately not realised, as the fund in question - launched in May last year - was not yet available for purchase by Morgan Stanley clients. ETFs are designed to be bought and sold as easily as common stocks, but their proliferation has forced most large brokerage and trading platforms to offer only a subset of the more than 14,000 ETFs that currently exist.

The Nasdaq rises

It is not known whether Hegseth's broker has subsequently identified an alternative fund focused on the defence sector for investment. The Nasdaq-listed IDEF fund has risen 28% over the past year. However, it has not benefited from the conflict in the Middle East, instead falling nearly 13% over the past month. The fact that Hegseth's broker was prepared to carry out such an operation, just as the Department led by the Secretary of Defence himself was preparing to launch a large-scale military campaign, is likely to provoke new and bitter controversy.

The rumours about Hegseth's future

Trump's War Secretary is a central figure in the constellation of American power. Observers describe him as someone who feels invested with a divine mission. Recently, however, the German newspaper Welt reported that his role would be questioned and that he might soon leave.