1In approximately 300 words describe the Arab oil embargo on

1.In approximately 300 words, describe the Arab oil embargo on the United States in 1973, which sent messages about the volatility of oil supply and demand. Describe the sequence of events, including those leading up to it and subsequent policies and reactions. Also describe the oil shocks in 1980 and 1981.

Solution

Arab- israeli war has taken place during the tear 1973. During these war the Arab members of the (OPEC) Organization of Petroleum Exporting Countries imposed an embargo against the United States. Becasuse U.S. decided to re-supply the Israeli military and to gain leverage in the post-war peace negotiations. Arab members of the OPEC also extended the embargo to other countries that supported Israel including the South Africa, Netherlands and Portugal. The oil embargo on the United States in 1973 had severly hit the economy of US. Generally the oil resrves of US were very low the US used to import 27% of oil every year. but due to the war the Arab members of the (OPEC) Organization of Petroleum Exporting Countries decided not to export the oil to the countries which support the isreal so the price of oil and gas was increasing day by day in US and other nations and in US there were large line in petrol and gas stations the whole US has to suffer due to embargo. People waited for hours in long lines at gas stations at New Jersey pumps, lines were four miles long.By the end of March 1974 the oil embargo on the United States was lifted.

Once again the oil shock was in the year 1980 to 1981 during these years there were a great  recession experencied by the US economy. The primary resason for this recession was Iranian Revolution of 1979 due to this Iranian Revolution of 1979 the oil prices was increases at a huge rate.