Arab oil embargo, suspension of oil shipments from the Middle East to the United States, the Netherlands, Portugal, Rhodesia, and South Africa. It was imposed in October 1973 by Arab oil-producing countries in retaliation for supporting Israel during the war. Yom Kippur War. The embargo on the United States was lifted in March 1974, but embargoes on other countries continued for some time. The Arab oil embargo was the first oil crisis, in which disruptions in oil supplies led to significant price increases and a global energy crisis. The embargo forced the United States and Western European countries to reevaluate their dependence on Middle Eastern oil. It also led to far-reaching changes in domestic energy policy, including an increase in U.S. domestic oil production and a greater emphasis on improving energy efficiency.
On October 6, 1973, Egypt and Syria launched a surprise attack on Israel, coinciding with the Jewish holy day of Yom Kippur. Egyptian and Syrian forces achieved early victories across the Suez Canal and the Golan Heights, but Israel quickly turned the tables and within weeks Israeli forces were advancing into Egyptian and Syrian territory. In an attempt to pressure the West to force Israel to withdraw from occupied territory, Arab states OPEC (Organization of the Petroleum Exporting Countries) announced significant production cuts and subsequently banned oil sales to the United States and the Netherlands. Founded in 1960, OPEC had previously kept a relatively low profile, primarily negotiating with international oil companies for better terms for its members.
As a result of actions taken by the U.S. president, hostility toward the U.S. among OPEC members had increased in the years preceding the embargo. Richard M. Nixon boosts the struggling American economy. For example, Nixon ordered the dollar to be taken off the gold standard that had been in place since the end of World War II. The resulting currency devaluation resulted in economic losses for the oil-producing countries, which made up most of their income in US dollars. A huge increase in Western oil consumption (more than doubling over the previous roughly 25 years) also contributed to the deepening of the crisis, as people in developed countries were accustomed to cheap gasoline and relatively stable prices.
After the embargo was imposed, the price of a barrel of oil quadrupled by 1974. As a result, the United States experienced its first fuel shortages and the first significant increase in gasoline prices since World War II. In response to the embargo, the U.S. government imposed fuel rationing and reduced fuel supplies. Speed limit to reduce consumption. As a last resort, Nixon seriously considered military action to seize oil fields in Saudi Arabia, Kuwait, and Abu Dhabi. However, negotiations in Washington, DC resulted in the embargo being lifted in March 1974.
