USA HISTORY

Detailed explanation-1: -During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.

Detailed explanation-2: -October 1973–January 1974 The embargo ceased U.S. oil imports from participating OAPEC nations, and began a series of production cuts that altered the world price of oil. These cuts nearly quadrupled the price of oil from $2.90 a barrel before the embargo to $11.65 a barrel in January 1974.

Detailed explanation-3: -The crisis was compounded when oil-rich nations in the Middle East declared an embargo against the United States in retaliation for its support of Israel. The oil embargo had a lasting effect on energy prices.

Detailed explanation-4: -In October 1973 the Persian Gulf members of OPEC doubled the price of their crude oil, then in January 1974 doubled it again. By that time the average price in the U.S. for imported oil had more than doubled to $6.92 per barrel, and by March it had increased to $11.10.