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September financial crisis fears grow as oil, bonds and AI warnings collide

The article points to rising oil prices above $100 a barrel, a global government bond sell-off, and calls from AI executives to slow development as key ingredients fueling market anxiety.

Reported · Written up by our desk · Emerging Markets

The Guardian Economics argues that September has historically been a flashpoint for financial crises, citing past disruptions including Britain leaving the Gold Standard in 1931, the pound exiting Europe’s Exchange Rate Mechanism in 1992, and the Lehman Brothers collapse in September 2008.

This September, it highlights what it calls a volatile mix of drivers, including soaring oil prices feeding through to higher petrol and diesel costs, a sell-off in government bonds around the world, and warnings from AI bosses to slow the pace of development.

The outlet also notes that the impact of the war involving Iran could still be less severe than initially expected, pointing to what it says has been a more limited effect from the closing of the strait of Hormuz than feared earlier this year.

However, it adds that markets are increasingly skeptical about the prospect of an imminent deal involving Iran, and it links that skepticism to rising crude prices, with fears focused on persistent inflation and higher interest rates from central banks even as the cost of fuel remains elevated due to refining shortages.

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