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How was the "oil weapon" used in 1973 and why?

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User Luceos
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Final answer:

In 1973, the "oil weapon" was used by OAPEC member states to impose an embargo on oil shipments to the United States and other nations that supported Israel, leading to a significant increase in oil prices and underscoring the economic interdependency of nations.

Step-by-step explanation:

The Use of the Oil Weapon in 1973

The term "oil weapon" refers to the strategic use of petroleum exports as a political tool. In 1973, member states of the Organization of Arab Petroleum Exporting Countries (OAPEC) exercised this weapon as a response to the West's support of Israel during the Yom Kippur War. By imposing an embargo on oil shipments to nations that supported Israel, OAPEC caused an abrupt shortage and steep rise in oil prices, from three dollars a barrel to twelve dollars a barrel. This was not just due to ethnic and religious conflicts but also due to long-standing economic grievances about Western pricing practices for goods exported to the Middle East.

As a result of the embargo, the average price of gasoline in the United States spiked, and the American economy faced severe challenges. Although the embargo was lifted by the spring of 1974, OPEC decided to maintain high oil prices by restricting production. The artificial price elevation persisted even after the initial crisis, and it took until the 1980s and 1990s for oil prices to return to their pre-1973 levels when global production increased and the Cold War's end encouraged freer trade.

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User Tifu
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