Which 1970s stock-market crash is commonly associated with the 1973 oil crisis and the end of the postwar boom?
Answer
1973–1974 bear market
Answer
1973–1974 bear market
The crash associated with the 1973 oil crisis and the end of the postwar boom is the 1973–1974 bear market.
Major stock indexes fell sharply from late 1973 into 1974 as economies faced an oil-price shock, high inflation, recession, and political uncertainty. In the United States, the S&P 500 lost roughly 48% from its January 1973 peak to its October 1974 low.
The oil crisis began after Arab oil-producing states imposed an embargo on countries supporting Israel during the Yom Kippur War. Oil prices surged, raising costs for businesses and households and worsening inflationary pressure.
The market decline was not caused by oil alone. The period also included the Watergate scandal, monetary pressures, and broader economic weaknesses. It is therefore more accurate to describe the crash as a multi-factor bear market linked to the oil shock.
Source: Wikipedia · fact-checked Oct. 2026