Which 1973–1974 crisis caused major stock-market declines after an Arab oil embargo?

The 1973–1974 crisis that caused major stock-market declines after an Arab oil embargo was the 1973 oil crisis.

In October 1973, Arab members of the Organization of Arab Petroleum Exporting Countries announced an oil embargo against countries viewed as supporting Israel during the Yom Kippur War. Oil prices rose sharply, creating a shock for economies dependent on petroleum.

The crisis contributed to inflation, slower growth, energy shortages, and severe market weakness. In the United States, the bear market that began in 1973 continued into 1974, and the Dow Jones Industrial Average lost a large share of its value from its January 1973 peak to its December 1974 low.

The oil crisis was not identical to the 1973–1974 stock-market bear market. The embargo was a geopolitical event, while the market decline also reflected inflation, recession, and earlier economic pressures.