BREAKING: Jared Kushner Is the Largest Shareholder in an Israeli Firm Backing Military Suppliers While Negotiating a Gaza Deal, per CNN
BREAKING: Jared Kushner is the largest shareholder in an Israeli firm investing in companies supplying equipment for the Israeli military. He is also negotiating a deal for Gaza, per CNN.
This one is going to raise eyebrows on both sides of the aisle.
The Setup
A CNN investigation found that while Jared Kushner has acted as a key negotiator in the war in Gaza, his private equity company, Affinity Partners, has held the largest stake in an Israeli firm backing businesses involved in Israel's military campaigns.
Kushner has skirted deeper scrutiny of this potential conflict of interest by acting as a volunteer envoy, rather than accepting a government job that would require him to disclose his finances.
In the process, Kushner has carved out an unprecedented dual role under the Trump administration, one that blends lucrative business and high-stakes politics amid a devastating war.
The Portfolio
The firm in question is Phoenix Financial, a Tel Aviv-based financial group. Affinity Partners doubled its investment in Phoenix shortly before Trump returned to office, and remains its largest single shareholder with roughly 9.9%.
Phoenix's portfolio includes at least nine companies supplying the Israeli military with drones, artillery components, warships and other equipment.
The biggest name in the mix is Elbit Systems, Israel's largest arms manufacturer, in which Phoenix holds about $265 million. Its shares have surged since the Gaza war began.
The portfolio also includes more than $68 million in Next Vision, a maker of cameras for military drones, at least $40 million in Reshef Technologies, which makes electronic fuses for artillery shells, plus Israel Shipyards and Ashot Ashkelon, which supply vessels and tank components.
Affinity does not directly own the defense companies, but the money runs through Phoenix straight into nine firms supplying the Israeli military.
The Conflict Question
The financial overlap is significant because Kushner has played a central role in the US administration's Gaza diplomacy, including negotiations with Israeli prime minister Benjamin Netanyahu.
Cynthia Brown, chief ethics counsel at Citizens for Responsibility and Ethics in Washington, told CNN: "the people profiting should not be the people making the decisions."
Kushner has reportedly called the Phoenix investment Affinity's best investment, with returns of around 5x on the initial position.
What This Means for the Market
Stories like this move defense stocks on headline risk and contract sentiment. Watch Elbit Systems for any sympathy move, since it is the name directly named in Phoenix's portfolio.
US defense primes tend to trade with the group on geopolitical headlines. Names to watch include Lockheed Martin and RTX.
On the options side, expect elevated call skew in defense names if Gaza headlines intensify. Unusual call flow in ESLT weeklies would be the tell that traders are positioning for a headline-driven pop.
Keep an eye on Unusual Whales news for the latest flow.