Which 1973 conflict and oil embargo helped trigger a major global stock-market downturn?

The Yom Kippur War and the resulting oil embargo helped trigger the major global stock-market downturn of 1973–1974. Egypt and Syria attacked Israel on October 6, 1973, and several Arab oil producers responded by restricting oil exports to countries supporting Israel.

The embargo contributed to a sharp increase in oil prices. Higher energy costs fed inflation, reduced consumer purchasing power and pressured companies' profits. Many economies experienced the difficult combination of inflation and weak growth known as stagflation.

Stock markets fell heavily during the wider 1973–1974 bear market. In the United States, the S&P 500 declined about 48% from its January 1973 peak to its October 1974 low. The oil shock was important, but monetary conditions, recession and other economic weaknesses also contributed.

The crisis is often confused with the 1979 oil shock, which followed the Iranian Revolution and occurred several years later.