American support for Israel during the 1973 Yom Kippur War was the catalyst for the OPEC embargo, which caused the first oil shock. The oil price roughly quadrupled, from around $3 per barrel to about $12 in a matter of days.
It immediately triggered an energy crisis. There were gas shortages and panic in the US as drivers sat in lines stretching for blocks, waiting to fill their gas tanks.
The second oil shock followed in 1979 as crude prices nearly tripled. A large conflict in the Middle East was again the cause—the Iranian Revolution and the subsequent Iran-Iraq War.
A third oil shock occurred in 1990 as Iraq invaded Kuwait, causing oil prices to more than double.
Here’s the bottom line.
Big Middle East wars are often catastrophic for global oil supplies. And supply disruptions cause price spikes. It’s a simple relationship.
This isn’t surprising. Analysts estimate that over 40% of global oil exports come from the Middle East.
Today, the Middle East is again on the cusp of a large regional war between Iran and its allies and Israel and its allies. The conflict could potentially be more destructive than the conflicts that caused the prior oil shocks.
https://financialunderground.com/articles/middle-east-wars-and-oil-shocks/
NickGiambruno / Nick Giambruno
npub1wgj…e082
2023-11-21 15:06:32
Author Public Key
npub1wgjh30uxvvepumxhl3qlfzmt4chueprxmcvrxyw0wjtv9m4w8zwq3se082Published at
2023-11-21 15:06:32Event JSON
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"content": "American support for Israel during the 1973 Yom Kippur War was the catalyst for the OPEC embargo, which caused the first oil shock. The oil price roughly quadrupled, from around $3 per barrel to about $12 in a matter of days.\n\nIt immediately triggered an energy crisis. There were gas shortages and panic in the US as drivers sat in lines stretching for blocks, waiting to fill their gas tanks.\n\nThe second oil shock followed in 1979 as crude prices nearly tripled. A large conflict in the Middle East was again the cause—the Iranian Revolution and the subsequent Iran-Iraq War.\n\nA third oil shock occurred in 1990 as Iraq invaded Kuwait, causing oil prices to more than double.\n\nHere’s the bottom line.\n\nBig Middle East wars are often catastrophic for global oil supplies. And supply disruptions cause price spikes. It’s a simple relationship.\n\nThis isn’t surprising. Analysts estimate that over 40% of global oil exports come from the Middle East.\n\nToday, the Middle East is again on the cusp of a large regional war between Iran and its allies and Israel and its allies. The conflict could potentially be more destructive than the conflicts that caused the prior oil shocks.\n\nhttps://financialunderground.com/articles/middle-east-wars-and-oil-shocks/",
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