US war secretary Pete Hegseth’s assistant Sean Parnell on Tuesday dismissed the report claiming that his broker explored options to invest in defence-linked assets shortly before the US-Israeli military action against Iran. He demanded “immediate retraction” of the report.“This allegation is entirely false and fabricated. Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment. This is yet another baseless, dishonest smear designed to mislead the public,” he said.“We demand an immediate retraction. Secretary Hegseth and the Department of War remain unwavering in their commitment to the highest standards of ethics and strict adherence to all applicable laws and regulations,” he added.The report published in Financial Times had said that a broker linked to Morgan Stanley contacted BlackRock in February about investing a multimillion-dollar amount in a defence-focused exchange-traded fund, just weeks before the US joined Israel in carrying out strikes on Tehran. The investment never went through because the fund, launched last year, was not yet accessible on Morgan Stanley’s platform. The report did not specify the broker’s level of independent authority or whether Hegseth knew about the proposed move. BlackRock declined to comment, while Morgan Stanley and the United States Department of Defense did not immediately respond to requests for comment.
