Rising oil prices, surging inflation: The Arab embargo 50 years ago weaponized oil to inflict economic trauma

Jim Krane, Fellow in Energy Studies, Baker Institute for Public Policy; Lecturer, Rice University and Mark Finley, Fellow in Energy and Global Oil, Baker Institute for Public Policy, Rice University
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Fifty years ago, a secret deal among Arab governments triggered one of the most traumatic economic crises to afflict the United States and other big oil importers. Saudi King Faisal and other Arab leaders launched an oil embargo on Oct. 17, 1973, as payback for Washington siding with Israel in its war with neighboring Egypt and Syria. The oil market hostilities arose from a pact between Faisal and the leaders of Egypt and Syria, whose armies planned surprise drives to retake their territory under Israeli occupation.