The energy crises in the 1970s and 1980s had disturbances in the oil supply chain due to events such as the 1973 Arab oil embargo, the 1979 Iranian revolution and the 1980 war between Iraq and Iran. [1] The Organization of Petroleum Exporting Countries (OPEC) imposed an embargo on the United States and other countries who sided with Israel during the Yom Kippur War in 1973. The embargo prohibited petroleum sales and “introduced cuts in oil production” to those nations under the embargo. [2] The Iranian Revolution caused a drop in oil production in 1979. This in turn led to a spike in price, causing fuel shortages. [4] By 1980, the world price of oil had peaked a little over $35 (USD) per barrel. It later fell below $10 per barrel in 1986. [1][3] The beginning of the Iran-Iraq war saw oil production decrease by almost 20 million barrels per day. It would take six to seven years for global energy prices to reach the level before the war and oil crises. [5]
