The 1973 oil crisis helped trigger a worldwide stock-market crash by sharply increasing oil prices.
The crisis began in October 1973 when Arab members of the Organization of Petroleum Exporting Countries imposed an oil embargo on countries seen as supporting Israel during the Yom Kippur War. Oil prices rose dramatically, creating inflationary pressure and increasing costs for households and businesses. The shock also contributed to recession in many industrial economies.
Global stock markets fell heavily between 1973 and 1974. In the United States, the Dow Jones Industrial Average lost roughly 45% from its January 1973 peak to its December 1974 low. This period is often described as a stagflationary crisis because economies experienced both weak growth and high inflation. The 1973 oil crisis is sometimes confused with the separate 1979 oil crisis, which followed the Iranian Revolution. The two energy shocks occurred in different years but both affected inflation, economic activity, and financial markets.