Analysts from JPMorgan noted that heightened market volatility is leading investment banks to process a greater number of transactions, which in turn is boosting their trading revenues. They emphasized that this increase is significant for the banking sector's overall income, as "the key to investment banking revenue lies in trading, not investment banking fees." The analysts pointed out that uncertainty stemming from the Middle East conflict, coupled with negative sentiment surrounding private credit, has triggered a decline in transaction volumes, which may adversely affect banking fees. They added that lower valuations make European investment banks more attractive compared to their U.S. counterparts. On Tuesday, investment banks led a broader rally in European financial stocks. Barclays rose by 4.3%, while Santander surged by 5% in the Spanish market. Société Générale climbed 4% in Paris trading.