Severe oil crisis of 1973

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.

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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.