USA HISTORY

Detailed explanation-1: -The oil crisis of the 1970s was brought about by two specific events occurring in the Middle-east, the Yom-Kippur War of 1973 and the Iranian Revolution of 1979. Both events resulted in disruptions of oil supplies from the region which created difficulties for the nations that relied on energy exports from the region.

Detailed explanation-2: -By the early 1970s, American oil consumption-in the form of gasoline and other products-was rising even as domestic oil production was declining, leading to an increasing dependence on oil imported from abroad.

Detailed explanation-3: -The crisis led to stagnant economic growth in many countries as oil prices surged. Although there were genuine concerns with supply, part of the run-up in prices resulted from the perception of a crisis. The combination of stagnant growth and price inflation during this era led to the coinage of the term stagflation.

Detailed explanation-4: -Average gas prices jumped more than 35 percent from 1973 to 1974, going from 39 cents a gallon to 53 cents a gallon, according to a U.S. Department of Energy report from last June. Adjusted for 2020 numbers (the most recent available in the report), that’s like going from $2.28 a gallon to $2.82 a gallon.