The Opec Oil Shock Crisis (1973): An Analysis

Abstract

The OPEC Oil Embargo (1973) was precipitated by the Yom Kippur War. The United States was the first country to be sanctioned by Saudi Arabia, Libya, and other Arab countries on October 19, 1973 for its political and military support for Israel (particularly through the delivery of military equipment and arms, which played a key role in Israel's wars against neighboring countries). The 1973 Oil Embargo put a strain on a United States economy that had become increasingly reliant on foreign oil. The research is conducting to analyse the The Opec Oil Price Shock Crisis (1973) and Impact to United States of America. The objectivof this study is to examine the OPEC Oil Price Shock Crisis impact to United States of America. The concept of national interest is used to support the action of United States of America in solving the the crisis. The study is being carried out using a qualitative approach, including data gathered from secondary sources. The secondary data in this study also consists of printed and digital material gathered from articles and books. Findings of the study are several impacts that have a significant impact on the United States where it has already had an impact on the economy, politics and also the United States relationship with the OPEC organization. One of the obvious impacts is from an economic point of view. The U.S. economy undeniably experienced a downward trend during the oil crisis. It left no lasting impression, even more than a year on the United States. Not to forget the impact on U.S. politics. U.S. politics is seen as less stable and volatile after the oil crisis. But the United States Government is still able to work together to overcome this problem. Not to forget the impact on US relations and the OPEC Organization. The relationship between the two was seen to erode when the crisis began and in 1974 to 1975 witness their recovery phase but this crisis has taught the United States not to be too dependent on oil resources from foreign countries.