Which 1973–1974 stock-market crash followed the oil shock and ended with the Dow down about 45% from its 1973 peak?

The 1973–1974 stock-market crash followed the oil shock and left the Dow about 45% below its 1973 peak.

The downturn began after the market reached a high in January 1973 and continued through late 1974. The 1973 Arab–Israeli War was followed by an oil embargo by Arab members of OPEC against countries supporting Israel. Oil prices rose sharply, contributing to inflation, slower growth and recession in many economies.

The crash also reflected earlier monetary and economic strains. The United States had ended the dollar’s convertibility into gold in 1971, and the Bretton Woods exchange-rate system was breaking apart. Inflation and weak corporate prospects made investors less willing to pay high prices for shares.

The Dow Jones Industrial Average reached its low in December 1974, roughly 45% below its January 1973 closing high. The crisis is sometimes reduced to the oil shock alone, but inflation, recession, monetary change and geopolitical uncertainty all shaped the market decline.