Democrats investigate whether US Secretary of Defense tried to buy shares in military companies before the war with Iran

Secretary Pete Hegseth alongside Donald Trump during a cabinet meeting on March 26, 2026. Sipa USA via Reuters Democratic parliamentarians in the United States have opened investigations to find out whether Secretary of Defense Pete Hegseth tried to invest millions of dollars in companies in the military sector before the war against Iran. According to the “Financial Times”, Hegseth’s broker at the bank Morgan Stanley approached the manager BlackRock in February to discuss investing in a fund linked to the defense industry. The contact would have occurred before the start of the conflict with Iran and was flagged internally by BlackRock, according to the report. The Pentagon denies the information. A spokesperson classified the case as “completely false and fabricated” and asked for a retraction. See the videos that are trending on g1 The investigation takes place on two fronts. In the Senate, a group of Democrats sent a letter to Hegseth asking for explanations about his finances and possible conflicts of interest. In the Chamber, the Supervision Committee also opened an investigation and requested documents and communications related to investments from the secretary. Parliamentarians say that, if confirmed, the attempt to profit from decisions linked to a war would be “shocking”. Investment was not made According to the Financial Times, Hegseth was unable to invest in the fund because the product was not available to Morgan Stanley clients. There is still no confirmation that he has invested in other shares in the defense sector. Under US rules, government members must declare financial transactions within 45 days. Experts say that, even without the investment being completed, the case may raise ethical doubts. Federal rules prohibit high-ranking officials from holding financial interests that might conflict with their duties. The investigation comes amid broader concerns about conflicts of interest in the Trump administration. Hegseth had also previously come under fire for selling shares days before an economic announcement that rattled markets.

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