European Bank Stocks to Snap Record Quarterly Run on Iran, AI

European banking shares are poised to snap a record 13-quarter winning streak, as optimism over strong earnings and capital returns is displaced by concerns over the impact of the Iran war and an exodus from the private credit market.

The Stoxx 600 Banks Index is down 8.7% this year after posting gains every quarter since 4Q 2022. The drop comes amid worries that surging energy prices will hit the economy.