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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.
Sources
[VERIFIED] The 1973 to 1974 embargo's cause, timeline, and end date US Department of State, Office of the Historian, Milestones 1969 to 1976, Oil Embargo
[VERIFIED] Historical crude oil price data before and after the embargo US Energy Information Administration, historical crude oil prices
[VERIFIED] The broader context and consequences of the 1973 to 1974 oil crisis US Department of State, Office of the Historian, Oil Embargo, 1973 to 1974