Which 1973 event helped turn a market downturn into the 1973–1974 stock-market crash?

The 1973 oil crisis helped turn a market downturn into the 1973–1974 stock-market crash.

In October 1973, Arab members of the Organization of Petroleum Exporting Countries proclaimed an oil embargo against countries viewed as supporting Israel during the Yom Kippur War. Oil prices rose sharply, creating inflationary pressure and increasing costs for businesses and consumers.

The stock-market decline had other important causes, including the end of the postwar economic boom, recession, high inflation, and political uncertainty connected with the Watergate scandal. In the United States, the S&P 500 fell roughly 48% from its January 1973 peak to its October 1974 low.

The episode is often described as a stagflation-era crash because weak economic growth occurred alongside persistent price increases. It was not simply an oil-price event, and the market’s fall extended beyond the embargo itself. The crash also affected markets outside the United States, making it a major international episode rather than an isolated Wall Street slump.