America's six largest banks collectively posted $47.4bn in profits in the first quarter of 2026, benefiting from market turbulence driven by the ongoing US-Israeli military campaign against Iran. Disruptions to tanker traffic through the Strait of Hormuz have pushed energy prices higher, stoking inflation fears and raising the prospect of a global recession — but the resulting investor panic sent trading volumes surging, boosting earnings at JP Morgan, Goldman Sachs, Bank of America, Citi, Morgan Stanley, and Wells Fargo. The IMF warned this week that a further escalation of the conflict could tip the world into recession, and several bank executives cautioned that a prolonged conflict may eventually weigh on loan demand, business activity, and investment banking fees.