What commodity shock helped trigger the 1973–74 global stock-market crash?

The 1973 oil crisis was a major commodity shock that helped trigger the 1973–74 global stock-market crash.

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 prices rose sharply, creating inflationary pressure and increasing costs for businesses and consumers.

The stock-market decline also reflected other forces, including the end of the postwar economic expansion, high inflation, recession, and the breakdown of the Bretton Woods monetary system. The result was a difficult combination often called stagflation: weak economic growth alongside rising prices.

The crash affected major markets on both sides of the Atlantic. In the United Kingdom, the FT 30 fell heavily, while U.S. share prices also suffered a prolonged bear market. The oil crisis was important, but it was not the only cause, and the 1973–74 decline should not be confused with the separate oil shock of 1979.