The oil price shock
The OPEC Crisis
- In 1973, OPEC economic crisis threteaned toa lter the balance of power in the Cold War.
- In October 1973, OPEC, the Organisation of Petroleum Exporting Countries, refused to supply oil to Israel's allies in response to the Yom Kippur War.
- This led to a quadrupling of the international price of oil.
The impact on the Cold War
- In the West:
- The crisis created an oil shortage leading to an atmosphere of crisis in the US as their economic growth relied on cheap oil.
- The OPEC Crisis threatened car and freeway use which was a crucial part of the way of life for many Americans.
- In addition to coninuing problems with the Vietnam War, the OPEC Crisis gave the feeling that the US was in decline and losing ground against communism.
- In the USSR:
- The crisis benefited…