The 1973 oil embargo helped trigger the stock-market crash and global economic downturn associated with the 1970s oil crisis.
In October 1973, Arab members of the Organization of Petroleum Exporting Countries imposed an oil embargo on countries viewed as supporting Israel during the Yom Kippur War. Oil producers also cut output, and the price of crude rose sharply.
The United States and other industrial economies faced higher energy costs, fuel shortages, inflation, and weaker growth. Stock markets fell, while the combination of stagnation and inflation became known as stagflation. The Dow Jones Industrial Average reached a major low in December 1974 after a prolonged decline.
The embargo was lifted in March 1974, but oil prices remained far above their earlier levels. The crisis was not caused solely by the embargo; monetary conditions, inflation, and pre-existing economic weaknesses also mattered.