According to the report, Hegseth’s broker at Morgan Stanley contacted BlackRock in February about making a multimillion-dollar investment in its iShares Defense Industrials Active ETF, which includes major defense companies like Raytheon, Lockheed Martin, and Northrop Grumman – some of the biggest players tied to military spending and conflict.
The current Iran conflict started February 28, 2026.
Although the investment ultimately did not go ahead because the fund was not yet available to Morgan Stanely clients, it’s possible another defense-related investment was pursued.
Decisions about war and national security should not overlap with potential financial gain. Those in charge of making military decisions should not be able to use that knowledge to enrich themselves, or let potential profits influence the decisions they make.
Congress needs to investigate and determine if Defense Secretary Hegseth improperly used his knowledge of potential military activity to make personal investment decisions.