A Diplomatic Conflict of Interest
Jared Kushner’s return to the center of U.S. Middle East diplomacy is colliding with his private financial portfolio. As Kushner spearheads Gaza peace initiatives for the Trump administration, his investment firm, Affinity Partners, holds significant stakes in companies that supply the Israeli military. This entanglement, highlighted by a CNN investigation, has drawn fresh scrutiny to the intersection of his public responsibilities and his private capital management.
The Architect of the Abraham Accords Returns
Kushner, who led the Abraham Accords during Donald Trump’s first term, regained a formal diplomatic foothold in January 2025. By January 2026, the White House officially appointed him to the Board of Peace and the Gaza Executive Board, granting him a direct hand in implementing U.S. policy for the Gaza Strip.
Parallel to these duties, Kushner continues to oversee Affinity Partners. Founded in 2021, the firm manages capital from Gulf sovereign wealth funds. In 2024, Affinity Partners acquired a stake in Phoenix Financial, a major Israeli financial group. That investment was expanded in January 2025, mere days before the second Trump administration began.
Affinity Partners Liquidates Portfolio Stake Amid Defense Investments
The CNN investigation uncovered at least nine companies within the Phoenix Financial portfolio that supply the Israeli military. By June 30, 2026, these holdings were valued at no less than $456 million. The largest segment—approximately $265 million—was invested in Elbit Systems, a primary Israeli defense manufacturer.
In July 2026, Affinity Partners liquidated roughly one-quarter of its Phoenix Financial stake for more than $340 million, securing a return five times the initial investment. While Kushner’s legal counsel denies his involvement in specific investment decisions, the firm confirmed that Kushner maintained regular dialogue with Phoenix executives regarding market trends and strategic opportunities before intensifying his diplomatic commitment.
Peace Plan Operational Failures Stall Reconstruction and Governance
These financial ties persist as the U.S.-led peace plan encounters significant operational failures. A United Nations report from September 2026 confirms that the disarmament of Hamas remains incomplete, and the transition bodies tasked with governing the territory have yet to fully assume their duties.
The Carnegie Endowment for International Peace has warned that current development projects may risk permanent displacement for Palestinians rather than facilitating their return.
Questions of Influence and Governance
The CNN report found no evidence that the financial relationship between Affinity Partners and Phoenix Financial directly determined the diplomatic or financial choices made regarding the Gaza peace process.
The Board of Peace, established under the White House plan, serves as a transitional governing administration for Gaza and is authorized to oversee the deployment of a temporary International Stabilization Force. However, as of the September 2026 UN report, large-scale reconstruction has yet to begin, and the transition of political functions in the Strip remains incomplete nearly a year after the start of the truce.
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