(TJV NEWS)  A broker connected to U.S. Defense Secretary Pete Hegseth reportedly explored a major investment in a defense-focused fund shortly before the U.S.-Israel military operation against Iran, according to a report highlighted by Investing Live, citing the Financial Times.

The report indicates that the broker, working through Morgan Stanley, contacted BlackRock in February to discuss a potential multimillion-dollar allocation into its Defense Industrials Active ETF—a fund centered on companies expected to benefit from increased military spending.

While the inquiry raised eyebrows due to its timing—just weeks before military action against Tehran—the investment ultimately did not go forward. According to the report, the fund was not yet available to Morgan Stanley clients, preventing the transaction from being completed.

The situation is drawing scrutiny because of Hegseth’s central role in overseeing the Iran campaign, with questions emerging about whether financial activity may have coincided with sensitive geopolitical decisions. However, the report does not establish whether Hegseth himself was aware of or authorized the broker’s actions.

Pentagon officials have strongly pushed back on the claims. A spokesperson dismissed the report as “false and fabricated,” insisting neither Hegseth nor his representatives sought such an investment and calling for a retraction.

The episode adds to growing concerns in Washington over potential conflicts of interest and the intersection of financial markets with high-level policy decisions during wartime.