The Pentagon on Tuesday vehemently denied a report claiming that a broker for U.S. Defense Secretary Pete Hegseth attempted to make a multi-million dollar investment in a major defense fund in the weeks leading up to the U.S. military action against Iran. Chief Pentagon spokesman Sean Parnell characterized the story as “entirely false and fabricated,” demanding an immediate retraction.

According to a report by the Financial Times on Monday, which cited sources familiar with the matter, a broker at Morgan Stanley allegedly contacted BlackRock in February regarding an investment in the “Defense Industrials Active ETF.” The report suggested the discussions occurred shortly before Washington launched strikes against Tehran on February 28. However, the investment reportedly did not proceed as the fund was not yet available to Morgan Stanley clients. It remained unclear whether Hegseth had direct knowledge of the broker’s inquiries or the level of discretion granted to his financial representatives.

“Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment,” Parnell stated on social media. While BlackRock declined to comment, the allegations come amid heightened scrutiny over well-timed trades in financial and prediction markets ahead of major policy decisions by President Donald Trump’s administration. Legal experts have raised concerns regarding potential information leaks, though the Pentagon maintains that all strategic decisions are made independently of private financial interests.