What 1973–74 event caused a major stock-market crash after oil prices rose sharply?

The 1973 oil crisis caused a major 1973–74 stock-market crash after oil prices rose sharply.

In October 1973, Arab members of OPEC and several other producers imposed an oil embargo on countries viewed as supporting Israel during the Yom Kippur War. The disruption and production cuts helped send the price of oil sharply higher. The United States and many other economies then faced inflation, energy shortages, and slower growth.

Stock markets suffered as corporate costs increased and investors anticipated recession. In the United Kingdom, the FT 30 index fell heavily, while U.S. shares entered a prolonged bear market that lasted into 1974. The episode is commonly associated with stagflation, a combination of weak growth and high inflation.

The embargo was not the only cause of the market decline. Monetary conditions, economic weakness, and political uncertainty also mattered. The separate 1979 oil crisis followed the Iranian Revolution and should not be used as the name for the 1973 event.