Bank of America Corp.'s commodities-trading revenue surged 60% in the first quarter, riding the wild market swings that pushed markets businesses at the biggest US banks to record highs.
The increase was driven, in large part, by moves in oil and precious metals, specifically gold, according to co-heads of global markets Denis Manelski and Soofian Zuberi.
"The activity levels in those two commodities were extraordinary in the first quarter," Manelski said in an interview Wednesday after the bank released first-quarter results. "It's been so headline-driven."
Global oil markets have been in turmoil since the US and Israel launched strikes on Iran earlier this year, which in turn effectively closed the Strait of Hormuz, the vital oil and gas shipping route. The conflict also damaged critical infrastructure in the Middle East, including oil fields, gas facilities and ports.
Precious metals also had a volatile first quarter, with gold rising to a record above $5,400 an ounce before plunging in a late January metals-market rout. After regaining some ground, gold and silver retreated again following the start of the Iran war. Gold ended the first quarter 8.1% higher.
At Bank of America, another major contributor to the trading windfall was the international business, which jumped 23% in the quarter from a year earlier. That contributed 45% of activity in the overall sales and trading division, the executives said. Zuberi added that it was a record quarter for the firm's prime-brokerage business, and in Asia-Pacific equities.
"We were in a good position to help clients execute" in Asia, especially North Asian markets, Zuberi said.
Equities trading was up 30% in the first three months of the year, fueled by "increased client activity and capital extended to the business for growth," Chief Financial Officer Alastair Borthwick said on an earnings call. The firm saw more client financing activity, "particularly in Asia, as well as strong trading performance in derivatives," Borthwick said.
Volatility has whipsawed markets since President Donald Trump announced a raft of tariffs on trading partners around the world last year. That's continued into 2026 with tumult sparked by the war in Iran, as well as concerns around artificial intelligence and private credit.
The market swings have been good news for the trading businesses at Bank of America and its rivals across Wall Street, which benefited from clients repositioning their holdings.
Bank of America's markets division posted its 16th consecutive quarter of year-over-year growth, with stock traders setting a three-month record. The bank has been investing in trading by adding more capital, recruiting talent and adding headcount to keep up with peers.
Manelski and Zuberi were named co-heads last year after former markets leader Jim DeMare was promoted to co-president of the bank in September. Manelski was previously head of sales for fixed income, currencies and commodities, while Zuberi was in charge of the equities sales and trading unit.
The ongoing conflict in the Middle East has "changed the investing landscape quite significantly," Manelski said in the interview. The duration of the wars will have an impact on how investors position themselves and think about the global economy going forward, he said.