In a significant development, top artificial intelligence executives, including OpenAI CEO Sam Altman, addressed the United Nations Security Council on Wednesday, highlighting the potential dangers posed by increasingly powerful AI systems. The briefing, which also featured Anthropic CEO Dario Amodei and Hugging Face co-founder Clément Delangue, underscored the need for global oversight as the technology advances rapidly.
Altman emphasized that the current stage of AI development "calls for extreme care," warning that the industry should not accept excessive technological risk merely because the potential benefits are substantial. He advocated for a balanced approach between "blind optimism" and "doomerism," and stressed that major decisions regarding AI should involve governments and democratic processes rather than being left solely to technology companies.
Amodei echoed these concerns, telling the council that AI could pose a risk to humanity if poorly managed. Canadian AI researcher Yoshua Bengio also warned that the dangers from advanced AI are "real and imminent." The meeting comes as global regulators grapple with how to govern a technology that is evolving faster than policy frameworks.
Treasury Yields Hit 2007 Highs
Meanwhile, US Treasury yields surged to levels not seen since 2007, driven by stronger-than-expected economic data, higher oil prices, and weak demand at a five-year note auction. The 10-year yield climbed to 5.135%, its highest since July 2007, after breaking above the key 5% threshold. The two-year yield rose to 4.947%, its highest since May 2024, while the 30-year yield reached 5.415%, its highest since mid-2007.
The economic data showed S&P Global's September services PMI rose to 58.7 from 56.5 in August, while the manufacturing PMI climbed to 56.7, both pointing to stronger business activity. This has increased expectations that the Federal Reserve could raise rates again in October. According to the CME Group's FedWatch tool, the probability of another quarter-point hike rose to 70% from 55% a day earlier.
Federal Reserve Governor Michael Barr also indicated that further policy adjustments may be needed to bring inflation back to target. The Treasury's $70 billion five-year note auction added to the pressure, with notes sold at a 5.033% yield, above the expected 5.002%, and indirect bidders accounting for 54% of the sale, below the six-auction average of 65%.
Oil Prices Rise Amid US-Iran Tensions
Oil prices settled higher as traders assessed developments in the US-Iran conflict and diplomatic efforts to end hostilities. Brent crude rose 4.25% to $103.52 a barrel, while WTI gained 2.39% to $92.66. Iranian President Masoud Pezeshkian said Tehran would never surrender to the US while maintaining that it still supports diplomacy. Iran was also reviewing a US response to its proposal to end hostilities.
Saudi Arabia has resumed operations on its East-West oil pipeline, while Iran has said the Strait of Hormuz could reopen within seven days if the US eases military pressure and lifts its blockade on Iranian ports. US crude inventories also rose by 3 million barrels to 426.4 million barrels in the week ended September 18, according to the Energy Information Administration.
Possible Diesel Export Ban
In a separate development, the White House was reportedly preparing a plan to ban US diesel exports for 90 days, according to Politico, although the White House later denied the report. The reported proposal comes as US retail diesel prices have climbed to record levels above $6.50 a gallon, according to AAA. Diesel futures initially fell more than 7% following the report before recovering some losses, while European gasoil futures rose.
The legal process for imposing an export ban remains unclear. Energy industry figures have opposed potential restrictions, arguing that they could provide limited short-term relief while contributing to higher fuel costs later.
This article is for informational purposes only and does not constitute financial advice.
