What 1973 event caused major oil price increases after OPEC members restricted oil exports?

The 1973 event that caused major oil price increases after OPEC members restricted oil exports was the 1973 oil crisis.

The crisis began in October 1973, when Arab members of the Organization of the Petroleum Exporting Countries, along with Egypt and Syria’s political context, used oil policy during the Yom Kippur War. The Arab oil embargo targeted countries viewed as supporting Israel, including the United States and the Netherlands. Production cuts and export restrictions reduced available supply to affected markets.

Oil prices rose sharply, and the shock contributed to inflation, fuel shortages, economic disruption, and slower growth in many industrial countries. Governments responded with measures such as fuel conservation campaigns, speed-limit changes, rationing systems, and efforts to develop alternative energy sources.

The event illustrates how a major supply reduction can shift a supply curve leftward, raising price and reducing quantity in the short run. It is distinct from the 1979 oil crisis, which followed the Iranian Revolution and involved a separate disruption.