Shares of major U.S. banks moved higher Thursday after President Donald Trump announced a five-day suspension of military strikes targeting Iranian power plants and energy infrastructure.
Citigroup (NYSE:C) led the gains, rising 3%. Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) each added 1.5%, while Wells Fargo (NYSE:WFC) advanced 2% and Goldman Sachs (NYSE:GS) climbed 2.25%.
Trump said the U.S. military would delay additional strikes after what he described as “productive” discussions between Washington and Tehran. The announcement helped calm fears of a broader escalation in the Middle East that could disrupt global energy markets and weigh on economic stability.
Bank stocks tend to be sensitive to geopolitical developments, particularly in regions that play a key role in global oil production. Rising tensions in the Middle East often trigger volatility in oil prices, which can influence economic growth and financial markets where banks maintain significant exposure.
The decision to pause military action reduced near-term uncertainty for the financial sector, helping lift bank shares. Citigroup — which has a large international presence — showed the strongest gain among the major lenders.