Question

35. Watch this video about OPEC. Explain what happened in 1973 in the U.S. when those countries placed an embargo on oil production. (held back supplies)

Answer 1

In 1973, several OPEC countries, including Saudi Arabia, Iran, and Iraq, placed an embargo on oil production as a response to the U.S. decision to support Israel during the Yom Kippur War. This led to a sharp increase in oil prices and shortages in the U.S. Due to the embargo, there were long lines at gas stations, price controls on gasoline, and even odd-even rationing of fuel. The crisis had a significant impact on the U.S. economy, leading to high inflation, unemployment, and a recession. This event highlighted the U.S.'s dependence on foreign oil and prompted efforts to increase domestic energy production and reduce reliance on OPEC oil.