Which 1970s energy shock helped drive the global bear market of 1973–1974?

The 1973 oil crisis helped drive the global bear market of 1973–1974.

In October 1973, Arab members of OPEC announced an oil embargo against countries viewed as supporting Israel during the Yom Kippur War. Oil prices rose sharply, creating inflation, supply disruption, and fears of recession in oil-importing economies.

Stock markets had already been weakening after years of rising valuations and monetary pressure. The energy shock intensified the downturn, and major markets suffered steep losses between 1973 and 1974. The period became associated with stagflation: weak economic growth combined with high inflation.

The 1973 crisis is distinct from the second oil shock of 1979, which followed the Iranian Revolution. Both affected markets, but they arose from different geopolitical events and occurred several years apart.