History·2 February 2026·4 min read
The 1973 oil crisis — when the world got expensive
A decision by oil-producing countries quadrupled the price of crude and threw the West into crisis.
In 1973, the Arab oil-producing countries cut supplies and the price of crude quadrupled. The West, dependent on cheap oil, fell into crisis: rationed petrol, rising prices.
Inflation plus stagnation
A new, hard-to-treat phenomenon appeared: "stagflation" — high inflation together with a stagnant economy. The crisis showed how tied the world economy is to a single resource, and how fragile prosperity can be.
