The Oil Crisis

ÂIn October 1973 two crises â one economic one political â intersected with dramatic and long term consequences for international relations. On 6 October Egypt and Syria launched an attack on Israel and within a few days the major Arab oil producers announced their support by use of the âoil weaponâ including a boycott of supplies for countries friendly to Israel and a programme of production cuts. This was followed by the unilateral declaration of a steep increase in the price of oil by the Organization of Petroleum Exporting Countries (OPEC). ÂThe result was international panic and world recession. Crude oil prices soared by a massive fourfold in just three months. ÂThe West's vulnerability had been exposed: it was being held hostage to oil. Yet despite efforts to address this dependence on oil imports in following years the 1979 Iranian Revolution triggered a further upward surge in prices. Today the importance of oil remains at the forefront ofÂthe West's foreign policy calculations in the Middle East. ÂIn this fascinating and timely new look at the oil crisis Fiona Venn examines these issues and the more unexpected effects of the crisis. She asks just how much really changed in the economic balance of power. Most importantly she argues that OPEC was used as a scapegoat for the world recession which had been already underway when the crisis detonated. ÂÂ. Language: English