The 1973–1974 stock-market crash associated with the oil crisis was the 1973–1974 bear market.
The downturn followed the collapse of the postwar economic expansion and was intensified by inflation, slowing growth, and the 1973 oil crisis. After the Yom Kippur War, Arab members of OPEC imposed an oil embargo on countries viewed as supporting Israel. Oil prices rose sharply, creating energy shortages and increasing costs for businesses and consumers.
In the United States, the Watergate scandal further damaged confidence, while the resignation of President Richard Nixon in August 1974 added political uncertainty. The S&P 500 lost roughly 48 percent from its January 1973 peak to its October 1974 low. The period is a classic example of stagflation, in which inflation remains high while economic growth weakens. It is often described as a crash, although its decline unfolded over many months rather than in one dramatic trading day.