In the first quarter of 2023, major US banks, including JP Morgan, Goldman Sachs, and Bank of America, reported combined profits of approximately $47.4 billion. This significant increase is attributed to heightened trading activity as investors reacted to market volatility stemming from the US-Israeli conflict with Iran. JP Morgan's profits rose by 13% to $16.5 billion, while Goldman Sachs experienced a 19% increase to $5.6 billion. Bank of America also reported a 17% profit growth to $8.6 billion. The ongoing conflict has disrupted tanker traffic in the Strait of Hormuz, leading to rising energy prices and inflation forecasts, which in turn have raised concerns about a potential global recession. The International Monetary Fund has cautioned that an escalation in the conflict could significantly impact net energy importers, including the US, prompting a 0.1 percentage point decrease in its 2026 growth forecast to 2.3%. Despite these concerns, banks are capitalizing on their strong quarterly performance, with substantial share buybacks reported, including JP Morgan's record $8.3 billion expenditure.