Pentagon Denies Hegseth's Broker Looked to Buy Defense Fund before Iran Attack

FILE - Defense Secretary Pete Hegseth listens as President Donald Trump speaks in the Oval Office of the White House, March 24, 2026, in Washington. (AP Photo/Alex Brandon, File)
FILE - Defense Secretary Pete Hegseth listens as President Donald Trump speaks in the Oval Office of the White House, March 24, 2026, in Washington. (AP Photo/Alex Brandon, File)
TT

Pentagon Denies Hegseth's Broker Looked to Buy Defense Fund before Iran Attack

FILE - Defense Secretary Pete Hegseth listens as President Donald Trump speaks in the Oval Office of the White House, March 24, 2026, in Washington. (AP Photo/Alex Brandon, File)
FILE - Defense Secretary Pete Hegseth listens as President Donald Trump speaks in the Oval Office of the White House, March 24, 2026, in Washington. (AP Photo/Alex Brandon, File)

A broker for US Defense Secretary Pete Hegseth attempted to make a big investment in major defense companies in the weeks leading up to the US-Israeli attack on Iran, the Financial Times reported on Monday, citing three people familiar with the matter.

Chief Pentagon spokesman Sean Parnell said on X the story was "entirely false and fabricated" and ‌demanded a ‌retraction.

The FT report said Hegseth's ‌broker ⁠at Morgan Stanley contacted ⁠BlackRock in February, about making a multimillion-dollar investment in the asset manager's Defense Industrials Active ETF, shortly before the US launched military action against Tehran.

According to the FT report, the investment discussed by Hegseth’s broker did not ultimately ⁠go ahead as the fund, ‌which launched in May last ‌year, was not yet available for Morgan Stanley ‌clients to buy. The FT report did not ‌say how much discretion the broker had to make investments on Hegseth's behalf, or whether Hegseth knew what the broker was doing.

"Neither Secretary Hegseth nor ‌any of his representatives approached BlackRock about any such investment," Parnell said.

BlackRock ⁠declined ⁠to comment on the report, while Morgan Stanley did not immediately respond to Reuters' request for comment.

The report on the investment attempt comes amid a wider scrutiny of trades made in financial and prediction markets ahead of US President Donald Trump's major policy decisions. Some of these decisions have been preceded by well-timed bets, leading some experts to raise questions about whether information had somehow leaked ahead of time.

 



Iran Warns Deal with US Not Yet Close, despite Some Progress

TOPSHOT - People cross a street past a billboard on the facade of a building depicting the Strait of Hormuz with a caption in Persian reading "Forever in Iran's Hand", at Vanak Square in Tehran on May 25, 2026.   (Photo by ATTA KENARE / AFP)
TOPSHOT - People cross a street past a billboard on the facade of a building depicting the Strait of Hormuz with a caption in Persian reading "Forever in Iran's Hand", at Vanak Square in Tehran on May 25, 2026. (Photo by ATTA KENARE / AFP)
TT

Iran Warns Deal with US Not Yet Close, despite Some Progress

TOPSHOT - People cross a street past a billboard on the facade of a building depicting the Strait of Hormuz with a caption in Persian reading "Forever in Iran's Hand", at Vanak Square in Tehran on May 25, 2026.   (Photo by ATTA KENARE / AFP)
TOPSHOT - People cross a street past a billboard on the facade of a building depicting the Strait of Hormuz with a caption in Persian reading "Forever in Iran's Hand", at Vanak Square in Tehran on May 25, 2026. (Photo by ATTA KENARE / AFP)

Iran warned Monday that, while some progress had been made, it was not yet close to striking a deal with the United States to end the Middle East war, after a weekend of mixed messages from Washington and Tehran.

World oil prices tumbled on renewed optimism about an agreement, after top US diplomat Marco Rubio suggested a deal could be reached within the day -- but Iran's foreign ministry spokesman responded: "No one can make such a claim."

Meanwhile, Pakistan's Prime Minister Shehbaz Sharif -- whose government is spearheading efforts to mediate a negotiated agreement between the United States and Iran -- met China's President Xi Jinping in Beijing.

US and Iranian forces have observed a ceasefire since April 8 while diplomats push for a negotiated settlement, although Iran has maintained controls on Gulf shipping through the Strait of Hormuz and the US Navy has sought to blockade Iran's ports.

"We thought we might have some news last night, maybe today," US Secretary of State Rubio told reporters during a visit to New Delhi, referring to hopes for a deal.

"We have what I think is a pretty solid thing on the table in terms of their ability to open up the straits, get the straits open," he said.

"We're either going to have a good agreement or we're going to have to deal with it another way. We'd prefer to have a good agreement," he said.

But in Tehran, foreign ministry spokesman Esmaeil Baqaei poured cold water on hopes for a quick final settlement.

- 'Certain fees' -

"It is correct to say that we have reached a conclusion on a large portion of the issues under discussion," he told a weekly news briefing.

"But to say that this means the signing of an agreement is imminent -- no one can make such a claim."

Baqaei stressed that Iran would continue to manage maritime traffic through the Strait of Hormuz by charging service fees -- arguing that this did not amount to Tehran "seeking to collect tolls".

"The services that are provided -- navigational services in addition to the measures necessary to protect the environment of the Strait of Hormuz”, the Arabian Gulf “and the Sea of Oman -- require the collection of certain fees," he said.

Earlier, President Donald Trump had said that he had told his negotiators "not to rush into a deal, in that time is on our side", and warned that the US naval blockade would remain in place until a deal was reached.

A post on Trump's Truth Social read: "If I make a deal with Iran, it will be a good and proper one," adding that: "It isn't even fully negotiated yet."

Israel's Prime Minister Benjamin Netanyahu said Sunday that he and Trump had agreed that "any final agreement with Iran must eliminate the nuclear threat entirely."

- 'Lasting peace' -

Iranian officials have stressed that, despite the long-standing US demand for an end to its uranium enrichment, talks on the issue of Iran's contested nuclear program have been deferred until after an initial agreement.

The war, which erupted after the United States and Israel attacked Iran on February 28 and saw Iran respond with missile and drone attacks across the region, drove energy prices higher.

Crude oil remains expensive by recent standards, but prices have see-sawed and Monday's mood of relative optimism caused prices to plunge by almost five percent.

The price of North Sea Brent crude and West Texas Intermediate slipped to $99.00 and $92.10 a barrel respectively.

On Saturday, leaders from Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan and Bahrain, as well as representatives from Türkiye and Pakistan, joined a call with Trump to discuss the deal.

The focus of international efforts moved to Beijing on Monday, where Pakistan's Sharif and army chief Asim Munir, who visited Tehran on Saturday, met senior leaders including Xi and Premier Li Qiang.

Speaking to Chinese leaders, Sharif said "the world is passing through a critical moment", Pakistan's state-run PTV channel showed.

"Things are moving in the right direction. I would like to thank China's support to promote peace."


China’s Xi Meets Pakistan PM Sharif as Iran War Looms

Chinese President Xi Jinping (6-L) and Pakistan's Prime Minister Shehbaz Sharif (4-R) attend a meeting at the Great Hall of the People in Beijing, China, 25 May 2026. (Pool/EPA)
Chinese President Xi Jinping (6-L) and Pakistan's Prime Minister Shehbaz Sharif (4-R) attend a meeting at the Great Hall of the People in Beijing, China, 25 May 2026. (Pool/EPA)
TT

China’s Xi Meets Pakistan PM Sharif as Iran War Looms

Chinese President Xi Jinping (6-L) and Pakistan's Prime Minister Shehbaz Sharif (4-R) attend a meeting at the Great Hall of the People in Beijing, China, 25 May 2026. (Pool/EPA)
Chinese President Xi Jinping (6-L) and Pakistan's Prime Minister Shehbaz Sharif (4-R) attend a meeting at the Great Hall of the People in Beijing, China, 25 May 2026. (Pool/EPA)

China's leader Xi Jinping met with Pakistan's Prime Minister Shehbaz Sharif in Beijing on Monday, state media reported, as diplomatic efforts by several countries to formally end the Iran war drag on.

The high-level meeting, reported by state news agency Xinhua, followed Sharif's talks earlier in the day with Premier Li Qiang, the country's number-two leader.

Sharif is accompanied on his trip to China by army chief Asim Munir, Islamabad's key negotiator between the United States and Iran, Pakistan television showed Monday.

Details on the discussions were not immediately published by Chinese state media.

Pakistan has emerged as a central mediator between the United States and Iran, hosting historic face-to-face talks last month that failed to yield a lasting agreement.

China has played a quieter role, shepherding phone calls and meetings with officials of affected Gulf countries.

Speaking to Chinese leaders in Beijing alongside Munir, Sharif said "the world is passing through a critical moment", Pakistan's state-run PTV channel showed.

"Pakistan has played a sincere role to mediate between US and Iran. Field marshal was in Tehran and did not want to miss this great visit," Sharif said.

"Things are moving in the right direction. I would like to thank China's support to promote peace."

Sharif kicked off his four-day official visit to China in Hangzhou in eastern Zhejiang province on Saturday.

It follows a visit by Munir to Tehran on Friday and Saturday alongside Pakistan's Interior Minister Mohsin Naqvi as part of ongoing mediation efforts to end the war.

China has said it would work with Pakistan to "make positive contributions to the early restoration of peace and stability in the Middle East".

Pakistan hosted in April the only direct negotiations between US and Iranian officials to take place since the war began.

Munir was at the center of the action during that round of talks, greeting both delegations on their arrival and displaying bonhomie with US Vice President JD Vance.

But the talks ultimately failed, with Iran accusing the United States of making "excessive demands".


Iran Executes Man Over Links to Nationwide Protests

A woman rides a bicycle as others cross a street in downtown Tehran, Iran, Sunday, May 24, 2026. (AP)
A woman rides a bicycle as others cross a street in downtown Tehran, Iran, Sunday, May 24, 2026. (AP)
TT

Iran Executes Man Over Links to Nationwide Protests

A woman rides a bicycle as others cross a street in downtown Tehran, Iran, Sunday, May 24, 2026. (AP)
A woman rides a bicycle as others cross a street in downtown Tehran, Iran, Sunday, May 24, 2026. (AP)

Iran on Monday executed a man convicted of carrying out armed attacks during the nationwide anti-government protests that peaked in January, the judiciary said.

Abbas Akbari's is the latest in a string of executions by the authorities after it ramped up hangings in security-related cases after the outbreak of war with Israel and the United States on February 28.

"Abbas Akbari... was hanged this morning," the judiciary's Mizan Online website reported, describing him as "one of the armed leaders" during protests in the central province of Isfahan.

According to the report, Akbari "opened fire in the street at security forces" and "was one of the armed leaders of the riots in Nain town in Isfahan province" while carrying a handgun.

He was also accused of attacking the governorate building, security establishments and health centers in Nain.

The judiciary said Akbari had been sentenced to death on charges including "moharebeh" -- waging war against God -- as well as deliberate destruction of public property "with the intent of confronting the system, disrupting public order and security, and assembly and collusion against national security".

The Supreme Court upheld the sentence following his appeal, and he was executed on Monday morning, Mizan said.

On Sunday, Iran executed a man convicted of espionage in the first reported execution linked to spying accusations during the war.

Iran carries out the second-highest number of executions in the world after China, according to rights groups including Amnesty International.