Final answer:
The OPEC embargo that led to an energy crisis began in October 1973 in response to the Yom Kippur War and U.S. support for Israel. It resulted in a quadrupling of oil prices and had lasting impacts on the global economy and international relations until the price of oil stabilized in the 1980s and 1990s.
Step-by-step explanation:
During the 1970s, the Organization of Petroleum Exporting Countries (OPEC) utilized its collective influence to disrupt the global oil market, leading to a significant energy crisis. This situation arose as OPEC's Arab member nations imposed an oil embargo, effectively restricting oil production and exports. The catalyst for the OPEC embargo was the Yom Kippur War in October 1973, during which the United States supported Israel against Egypt and Syria. As a strategic response, OPEC members initiated the embargo, causing a drastic increase in oil prices worldwide, with prices quadrupling from roughly three dollars a barrel to twelve dollars.
Impact on the United States included fuel shortages, with an estimated one in five gas stations running out of fuel, domestic rationing, and regulations on fuel purchase days based on vehicle license plate numbers. Financially, this period saw inflated gasoline prices from thirty-eight cents per gallon to a peak of fifty-five cents per gallon by June 1974, instigating a broad economic strain as the cost of goods relying on oil surged.
The embargo was lifted in March 1974, but the effects of the crisis were long-lasting, with oil prices remaining high until the 1980s and 1990s. The geopolitical power struggle highlighted the West's vulnerability and dependence on Middle Eastern oil, deeply affecting international relations and economic policies for years to follow.