Sean Parnell, US Assistant Secretary of Defense Pete Hegseth, on Tuesday denied the report that claimed his broker discussed options to invest in defense-related assets shortly before the US-Israeli military action against Iran.
He called for the “immediate retraction” of the report.“This allegation is completely false and fabricated. Neither Minister Hegseth nor any of his representatives contacted BlackRock regarding any such investment. This is another baseless and dishonest smear intended to mislead the public,” he said.He added: “We demand an immediate retraction. Secretary Hegseth and the War Department remain steadfast in their commitment to the highest standards of ethics and strict adherence to all applicable laws and regulations.”
The report in the Financial Times said that a broker linked to Morgan Stanley contacted BlackRock in February about investing a multi-million dollar sum in a defense-focused exchange-traded fund, just weeks before the United States joined Israel in carrying out strikes on Tehran. The investment never took place because the fund, which was launched last year, was not yet available on Morgan Stanley’s platform. The report did not specify the mediator’s level of independent authority or whether Hegseth was aware of the proposed move. BlackRock declined to comment, while Morgan Stanley and the US Department of Defense did not immediately respond to requests for comment.
