Arab Oil Embargo

The Arab oil embargo, imposed by the Organization of Arab Petroleum Exporting Countries, led by Saudi Arabia, during the Yom Kippur war in 1973, refers to the suspension of oil supplies to the USA and its allies. The embargo was in response to these countries’ support and military assistance extended to Israel. The consequences of the embargo included a global oil crisis, characterized by oil shortages, closures of oil refineries and industries, and a sudden 300% increase in oil prices. The embargo on oil was imposed in October 1973 and lifted in March 1974, after 5 months, once the region stabilized. The crisis in oil had numerous implications for the global political economy. Following the crisis, the USA implemented changes and reforms in the energy sector, such as increasing domestic oil production, embracing energy-efficient technologies, and reducing dependence on oil by developing alternative energy sources. The oil embargo had a substantial impact on global politics due to its significant political and economic costs, as well as its role in intensifying the rivalry between Cold War adversaries. The USA supported Israel, while the Soviet Union backed Arab states, further complicating the situation.