Kushner’s Diplomatic Role Clashes with $1 Billion Stake in Israeli Defense Supplier

Key points

• Affinity Partners, owned by Jared Kushner, doubled its stake in Phoenix Financial to 7.4% just before Trump’s 2025 inauguration, making it the largest shareholder.
• Phoenix Financial holds stakes in nine companies supplying the Israeli military, including Elbit Systems, which saw its stock rise 165% since the Gaza war began.
• Kushner cashed out a quarter of his Phoenix stake in July 2026 for over $340 million, yielding a return of more than five times the initial investment.
• Kushner acts as a volunteer envoy, avoiding the financial disclosure requirements of a formal government position, which critics say obscures potential conflicts of interest.
• Phoenix’s portfolio includes investments in drone camera maker Next Vision, artillery fuse producer Reshef Technologies, and shipbuilder Israel Shipyards, all of which reported increased demand due to the war.

Background

Kushner previously served as a senior White House adviser during Trump’s first term, helping broker the Abraham Accords. In the current administration, he operates as an informal adviser, a shift that allows him to avoid public financial disclosures. His firm, Affinity Partners, was incorporated in 2021 and received a $2 billion investment from Saudi Arabia’s Public Investment Fund. Recent archive coverage notes Kushner’s active role in pressuring Hamas to disarm as part of the US-backed peace roadmap, further entangling his diplomatic actions with the region’s security dynamics.

How outlets are covering it

CNN and Bankingnews both report the financial links between Affinity Partners and Phoenix Financial, highlighting the ethical concerns raised by critics like Cynthia Brown of Citizens for Responsibility and Ethics in Washington. However, they differ in emphasis: CNN focuses on the specific military contracts and stock gains of the nine companies, while Bankingnews stresses the structural advantage Kushner gains by acting as a volunteer rather than a government official. Kushner’s attorney denies any influence over Phoenix’s investment decisions, stating he is not on the board, though Kushner himself admitted to regular dialogue with Phoenix management before his diplomatic duties intensified. The White House dismissed the conflict of interest as a 'tired narrative,' while Democrats have called for a House Judiciary Committee investigation.

Why it matters

This situation raises significant questions about the separation of private profit and public diplomacy in US foreign policy. If a key negotiator in a war zone holds substantial financial interests in companies benefiting from that conflict, it may undermine the perceived neutrality and integrity of US-led peace efforts. The lack of financial disclosure due to Kushner’s volunteer status creates a transparency gap that could erode public trust in the administration’s handling of the Gaza crisis and broader Middle East strategy.

What to watch

Democrats in the House Judiciary Committee may pursue formal investigations into Kushner’s activities if they regain control of the chamber in the midterms. The White House is expected to continue defending Kushner’s dual role, while critics may push for new legislation requiring disclosure for volunteer envoys. The ongoing strikes in Gaza, despite the ceasefire, may further complicate the narrative around Kushner’s 'peace broker' image and the financial gains of his firm.