The 1973 oil crisis began in October 1973 after Arab oil producers announced an embargo against selected countries.
The embargo followed the outbreak of the Yom Kippur War on October 6, 1973. Arab members of the Organization of Arab Petroleum Exporting Countries announced restrictions aimed at countries viewed as supporting Israel, including the United States. Oil production cuts and export limits contributed to a dramatic rise in energy prices.
The shock affected inflation, industrial costs, transportation and economic growth. Stock markets also suffered as investors reassessed corporate profits and the prospects for a global economy dependent on inexpensive petroleum. In the United States, the crisis contributed to fuel shortages and long lines at service stations.
The oil crisis was an important factor in the 1973–1974 bear market, but it was not its only cause. Inflation, recession concerns and the end of the postwar economic boom also shaped market performance. The embargo ended in March 1974, while its economic effects lasted longer.