The Oil Crisis of the 1970s

The 1970s oil crisis was caused by geopolitical tensions, mainly when Middle Eastern OPEC countries reduced oil production and embargoed exports to countries supporting Israel during the Yom Kippur War. This led to a sharp increase in oil prices worldwide, causing fuel shortages, inflation, and economic slowdown in many nations. The crisis highlighted the world’s dependence on Middle Eastern oil, prompting efforts to develop alternative energy sources and improve energy efficiency. It underscored how geopolitical events can heavily impact global markets and everyday life through energy supply disruptions.