Severe oil crisis of 1973
Hello, in recent days, the price of oil has increased faster than your weight, people and families all convert wedding gifts to gasoline for it's luxury and practicality. At this point, the question is whether we will enter another period of oil crisis or not? Actually, in the past we have not only had Black Friday, but a whole black week because of oil and in today's video, let's learn about the oil crisis of 1973.
#interestingknowledge #knowledge #interesting
First, let's find out what caused this crisis. After the
Six-Day War in June 1967, Israel took the Golan Heights from Syria, the Sinai
Peninsula from Egypt, and East Jerusalem from Jordan.
Feeling more helpless than in his grandfather's time,
then-Egypt President Anwar El Sadat was determined to regain the lost land with
another war. And the enemy of the enemy is a friend, he immediately contacted
the Syrian president to fight with Israel, then the alliance also had powerful
arms like Iraq and Jordan.
After a long time of planning, the military leaders of Egypt
and Syria also chose an auspicious day to open fire. At exactly 2:00 pm on
October 6, 1973, they began to attack Israel and Israel at that time was still
sleeping with pillows high, not knowing the muzzle was pointed at them.
However, after only a few days, the Israeli military forces
defeated the Syrian campaign in the southern Golan Heights, while for Egypt,
the Israelis were more difficult and when faced with the danger of defeated,
Israel was forced to look to the American brother to rely on.
With a close relationship above friendship, under love, plus
knowing that the Soviet Union is a big supplier of weapons to Egypt and Syria,
the US immediately agreed to approve an additional military aid package worth
$2.2 billion, combat aircraft, tanks and ammunition were immediately set to go
to Israel.
In addition, with the advice of the US, Israel also changed
its tactics to keep Egypt at bay. When unable to continue fighting to the end,
Egypt began to use the last guise, which is oil.
The story is that before pulling troops to Israel to claim
land, Egypt had an intimate meeting with Saudi Arabia and Arab oil-producing
countries. After the meeting, he decided: "any country that gets involved
in this war and helps Israel will limit oil exports."
And of course the US was at the top of the list, to punish
the supply of weapons to Israel, the Organization of the Petroleum Exporting
Countries (OPEC) implemented a series of sanctions to stop oil supplies to the
US and Europe.
It is worth mentioning that from 1970 to 1973, the US demand
for crude oil doubled. In 1973, the United States imported 6.2 million barrels
of oil a day, and 66 % of that supply came from the Middle East.
Half a month after the war in Israel broke out, Arab oil
producers raised oil prices by 17% to $3.65 per barrel, followed by a 5% cut in
oil imports to the United States and its allies such as Canada, Japan, Great
Britain, the Netherlands, South Africa and Portugal.
Two months later, production was further reduced to only 25%
compared to before the embargo, this embargo has caused a crisis and seriously
affected the global economy and politics.
And although the Israeli war ended on October 26, that is
only 20 days after the war broke out. But on November 7 of that year, US
Secretary of State Henry Kissinger still set out for Saudi Arabia to meet King
Faisal, whom he considered the most unpredictable and difficult to negotiate.
Despite using all his negotiating skills, Kissinger
eventually returned home without any agreement to stop the embargo. Why does
the US have to make concessions to Saudi Arabia and what are the consequences
of this embargo? Let's continue together.
During this period, oil prices rose from $3 a barrel to $12
a barrel, and the US auto industry fell into recession because American-made
cars consume more gasoline than Japanese and West German cars.
The states asked people not to hang Christmas lights, some
places even banned gas stations from selling gas on Saturdays and Sundays,
inflation began to increase, the US stock market wobbled when in just a month
and a half $ 97 billion had evaporated, which was a huge amount at the time.
And Europe is not much better, Britain, Germany, Italy,
Switzerland and Norway ban flying, sailing or driving on Sundays. The UK
requires people to heat only one room in the house during the winter, Sweden
requires people to exercise with 37-degree blankets to keep warm because they
have cut gas and oil for heating, and the Netherlands is more severe, is to
imprison people who consume more electricity than they are allowed to use.
In general, of the 9 members of the European Economic
Community, Britain and France have almost no interruption in oil supply because
they refuse to allow the US to use airports and stop supplying weapons to both
Israel, Egypt and Syria.
Finally, unable to withstand the oil crisis, the US
pressured Israel to withdraw from the Sinai Peninsula and the Golan Heights,
and the embargo was lifted in March 1974. However, the oil crisis of 1973 is
still considered one of the eight worst recessions in the United States.
Thus, not only nuclear weapons but also oil become a fatal weakness if there is a conflict between countries, the oil crisis of 1973 is the best example, thank you for watching video, goodbye and see you soon.
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