The Organization of Petroleum Exporting Countries (OPEC) implemented an oil embargo in October 1973, prohibiting nations that supported Israel in the Yom Kippur War from purchasing its oil. This led to a 400% increase in oil prices from $2.59 to $11.65 per barrel and high inflation in consuming countries. Western nations responded with measures like fuel rationing and restrictions on driving and flying to reduce energy usage, while also encouraging growth through interest rate cuts. The embargo motivated searching for renewable fuels and was lifted in March 1974 after negotiations.

1. Reported by RCSDIT

2. The Organization of the
Petroleum Exporting
Countries (OPEC)
implements what it calls "oil
diplomacy" October 17, 1973.
It prohibits any nation that had
supported Israel in its
“Yom Kippur War" with Egypt,
Syria and Jordan from buying
any of the oil it sells.

3.  The price of oil products increase 400%: from
$2.59 to $11.65 a barrel.
 The quadruple increase in oil price lead to
inflation in consuming countries.
 Western nations’ central banks decided to
sharply cut interest rates to encourage growth.
 This leads to searching for renewable sources of
fuel.

4. Areas Response
United States of America Emergency Highway
Energy Conservation Act
European Economic
Community
Governments ban
flying, driving and
boating on Sundays.

5. Areas Response
Sweden Government rationing of
gasoline and heating oil
Netherlands Government imposes
prison sentences for
using more than given
rations for electricity

6. Areas Response
Israel Solar heat water
Japan Industries shift from oil-
focused to electronics

7.  In March 1974, the embargo was lifted after
negotiations at the Washington Oil summit.
 The embargo was lifted because the oil
producing countries were heavily dependent on
the revenues and OPEC was afraid of the
discovery of alternative fuel sources.