Berliner Boersenzeitung - Oil supply concerns and AI warnings weigh on global markets

Oil prices climbed and technology shares fell on September 14 as investors assessed a Saudi pipeline closure, continuing inflation pressures and calls from AI executives to slow development of the technology.

Brent crude moved back towards $110 a barrel after Saudi Arabia shut its East-West pipeline following drone attacks by Yemen’s Houthis. The route has become important for exports because of Iran’s effective closure of the Strait of Hormuz during the Middle East war.

US diesel prices reached a record above $6 a gallon, increasing concerns about costs for transport, agriculture and construction. Wall Street opened broadly lower after losses in most Asian and European markets. The dollar strengthened as rising energy prices influenced expectations for US monetary policy.

AJ Bell investment director Russ Mould said oil and AI concerns were weighing on investors simultaneously, with bond yields rising and equity markets losing momentum. He linked the moves to inflation worries reinforced by the previous week’s elevated US consumer price figures.

Anthropic chief executive Dario Amodei called on September 12 for companies to slow the development of powerful AI systems so they could better address risks. Tickmill Group strategist Patrick Munnelly said the warnings prompted investors to reconsider the scale and pace of the industry’s investment boom and when that spending would generate revenue.

Persistent oil and gas price increases have also raised concerns that higher interest rates could delay expected AI profits. Analysts broadly expected the Federal Reserve to raise rates, with US inflation remaining above its 2% target.

Pepperstone analyst Chris Weston said markets assigned a 92% probability to a rate increase and were assuming a combined 50 basis points of tightening by year-end. Such action would conflict with President Donald Trump’s promises of economic relief before November’s congressional midterm elections.

(T.Renner--BBZ)