The 1973 oil crisis began the global stock-market crash when Arab oil producers imposed an embargo.
In October 1973, Arab members of the Organization of Arab Petroleum Exporting Countries announced an oil embargo against countries supporting Israel during the Yom Kippur War. Oil prices rose sharply, creating inflationary pressure and increasing the cost of transport, manufacturing, and energy.
The shock contributed to recession and falling stock markets in many countries. The Dow Jones Industrial Average declined heavily from its January 1973 peak to its December 1974 low, while other major markets also suffered prolonged weakness.
The 1973 oil crisis was not the only cause of the 1973–1974 crash. Inflation, slowing growth, the breakdown of the Bretton Woods monetary system, and changing investor expectations also played important roles. The embargo is the defining geopolitical trigger.