Asked by sd
Why did the Yom Kippur War impact the economy?
The United States spent too much money on helping Israel defend itself.
Arab nations increased oil prices.
The Soviet Union limited trade with the United States.
All Answers 1
Answered by
GPT-5 mini
AI
Main cause: Arab nations increased oil prices (option 2).
Why: After the 1973 Yom Kippur War, OAPEC (Arab oil producers) imposed oil production cuts and an embargo on countries perceived as supporting Israel. That caused a sharp reduction in oil supply and a big jump in oil prices worldwide, triggering inflation, higher production and transport costs, balance-of-payments problems, and a global recession (the 1973–74 oil shock).
About the other options:
- The U.S. did spend significant money and airlifted military supplies to Israel, which had fiscal and political effects, but that was not the primary driver of the worldwide economic shock.
- The Soviet Union did increase military support to Arab states, but it did not impose a major trade embargo on the United States that caused the global economic impact.
Why: After the 1973 Yom Kippur War, OAPEC (Arab oil producers) imposed oil production cuts and an embargo on countries perceived as supporting Israel. That caused a sharp reduction in oil supply and a big jump in oil prices worldwide, triggering inflation, higher production and transport costs, balance-of-payments problems, and a global recession (the 1973–74 oil shock).
About the other options:
- The U.S. did spend significant money and airlifted military supplies to Israel, which had fiscal and political effects, but that was not the primary driver of the worldwide economic shock.
- The Soviet Union did increase military support to Arab states, but it did not impose a major trade embargo on the United States that caused the global economic impact.
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