CNN: Kushner’s “Israel” Investment Raises Gaza Conflict-of-Interest Questions

By Staff, CNN

Jared Kushner’s role as a key US negotiator on the Gaza war has come under scrutiny over his private equity firm’s major investment in Phoenix Financial, an “Israeli” financial company with significant holdings in businesses that supply equipment and weapons to the “Israeli” military.

According to a CNN investigation, Kushner’s firm, Affinity Partners, became Phoenix’s largest shareholder after roughly doubling its stake shortly before Donald Trump returned to the White House. Affinity later sold about a quarter of its Phoenix holdings for more than $340 million, generating a return of more than five times its initial stock purchase. Its remaining 7.4% stake was worth more than $1 billion as of July.

Phoenix’s publicly available filings show investments worth hundreds of millions of dollars in Elbit Systems, “Israel’s” largest weapons manufacturer, as well as stakes in companies involved in military drones, artillery components, armored vehicles and naval vessels. Phoenix also holds investments in US companies Boeing and Caterpillar, whose products are used by the “Israeli” military.

Elbit has received hundreds of millions of dollars in contracts from the “Israeli” War Ministry during the Gaza war, while its stock has risen sharply since the conflict began. Other Phoenix-backed companies have similarly reported increased demand linked to military activity.

The financial ties have raised questions because Kushner has simultaneously played a prominent unofficial diplomatic role for the Trump administration. Since 2025, he has advised Trump on the Middle East, participated in negotiations with “Israeli” and Arab leaders and played a central role in efforts to broker a Gaza ceasefire.

Kushner has not held a formal government position during his current diplomatic involvement, meaning he is not subject to the same financial disclosure requirements that apply to many government officials. His attorney has denied any conflict, saying Kushner has never directed Phoenix’s investment decisions or been involved in the purchase, holding or sale of the companies identified in the investigation.

The attorney also said any suggestion that Kushner’s diplomatic activities influenced Phoenix’s investments, or that the investments influenced his diplomatic work, is incorrect.

Kushner has nevertheless acknowledged maintaining regular contact with Phoenix’s management and has openly described his belief that economic investment can help bring “Israel” and Arab countries closer together.

Critics argue that the combination of private financial interests and an influential diplomatic role creates serious questions about potential conflicts of interest. The White House has rejected those concerns, saying Kushner conducts his diplomatic activities voluntarily and that his business interests are separate from his work for Trump.

The controversy highlights the unusual overlap between Kushner’s private investments, his financial relationships in the Middle East and his increasingly influential role in US diplomacy surrounding the Gaza conflict.