The 1973 Oil Crisis
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Known as the “First oil shock,” the 1973 oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Export proclaimed an oil embargo. The embargo was targeting the nations they thought were in support of Israel during the Yom Kippur War. Originally, it was aimed at Canada, Japan, the United Kingdom and the United States, but eventually extended to Portugal, Rhodesia, and South Africa. At the end of the embargo, the price of oil had risen from $3 a barrel to $12 globally, and even higher in the United States. The embargo had harsh short-term and long-term effects on global politics and the economy. Another oil crisis occurred in 1979 and is referred to as the Second oil shock.
