USA HISTORY

Detailed explanation-1: -In the 1970s, the world was unprepared for higher oil prices, cars were not fuel efficient and there were fewer alternatives to oil. In the 1970s, oil was more important to the world economy and had a bigger direct impact on inflation.

Detailed explanation-2: -After the imposition of the embargo, the price of a barrel of oil quadrupled by 1974. As a result, the United States experienced its first fuel shortage and first significant increase in gasoline prices since World War II.

Detailed explanation-3: -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-4: -Oil Embargo, 1973–1974. 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.