economics · 1973 to 1974

The 1973 Oil Embargo: How a Cartel's Repeated Game Reshaped an Economy

OPEC's Arab members cut off oil to the United States for six months in 1973. The embargo itself ended quickly. The strategic behavior it triggered, on both sides, did not.

Facts drawn from the US State Department's Office of the Historian, the US Energy Information Administration, and Encyclopaedia Britannica; interpretive framing is labeled as modeled analysis.

In October 1973, Arab members of OPEC declared an oil embargo against the United States and other countries seen as supporting Israel during the Yom Kippur War, cutting off a major source of the country's imported crude oil.

[VERIFIED] Crude oil prices rose from about 3 dollars a barrel before the embargo to roughly 12 dollars a barrel by early 1974, according to the US Energy Information Administration's historical price data, a nearly fourfold increase in a matter of months.

Play the same structure: The Embargo Line.

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