The 1973 oil crisis sharply increased oil prices and helped worsen inflation in many importing countries.
The crisis began in October 1973 after Egypt and Syria attacked Israel, beginning the Yom Kippur War. In response to support for Israel, Arab members of the Organization of Arab Petroleum Exporting Countries announced an oil embargo against selected countries, including the United States.
Oil production cuts and the embargo disrupted supplies and pushed prices much higher. Because petroleum powered transportation, heating, electricity generation, and industrial production, the shock raised costs throughout importing economies. It also contributed to slower growth and unemployment, creating a difficult combination for policymakers.
The crisis encouraged energy conservation, strategic petroleum planning, and efforts to diversify energy sources. It is separate from the 1979 oil crisis, which followed the Iranian Revolution and produced another major supply disruption.