What event in October 1973 helped trigger the global bear market of 1973–1974?

The Arab oil embargo helped trigger the global bear market of 1973–1974. In October 1973, Arab members of OPEC imposed an embargo on countries seen as supporting Israel during the Yom Kippur War.

The embargo and related production restrictions caused oil prices to rise sharply. Higher energy costs fed inflation, squeezed households and businesses, and weakened economic growth. Central banks responded to inflationary pressure with tighter monetary policy, creating an especially difficult combination of rising prices and slowing activity.

Stock markets had already been vulnerable after a long period of postwar expansion and increasing inflation. The Dow Jones Industrial Average fell from its January 1973 high to its December 1974 low by roughly 45%. The crash is often discussed alongside the 1970s energy crisis, though the oil embargo was one major catalyst rather than the sole cause of every market decline.