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The Effect Of 1973 Oil Embargo On The United States

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On October 6, 1973, on the eve of Yom Kippur (the most holy day in the Jewish religion) Egypt attacked Israel. Israel proceeded to defend itself and for the third time since World War II the small Jewish state triumphed against one who greatly outnumbered it. The defeat humiliated the Arab nation; it retaliated with its most powerful weapon, an oil boycott. Arab members of the Organization of Petroleum Exporting Countries (OPEC) primarily aimed the oil embargo at the United States, for their decision to re-supply the Israeli military and gain advantage in the post-war peace negations. However OPEC members also protracted the embargo to other countries that supported Israel. These included the Netherlands, Portugal, and South Africa. The 1973 Oil Embargo acutely stained the U.S. economy, one that had grown increasingly dependent on foreign oil.…show more content…
The price of oil per barrel first excessively doubled, then quadrupled, imposing astronomical costs on consumers and structural tests to the strength of national economies. President Richard Nixon and Secretary of State Henry Kissinger recognised the constraints involving peace talks to end the war and negotiations with Arab OPEC members to end the oil shortage and boost production. Initial discussions between Kissinger and Arab leaders started in November 1973 and culminated with the First Egyptian-Israeli Disengagement Agreement on January 18, 1974. Though a finalised peace deal failed to present itself, the prospect of a negotiated to end hostilities between Israel and Syria proved sufficient to convince the OPEC to lift the embargo in March
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