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140-469: In October 1973, the Organization of Arab Petroleum Exporting Countries (OAPEC) announced that it was implementing a total oil embargo against countries that had supported Israel at any point during the 1973 Yom Kippur War , which began after Egypt and Syria launched a large-scale surprise attack in an ultimately unsuccessful attempt to recover the territories that they had lost to Israel during

280-480: A Wall Street Journal article stated, "Last month State Farm pulled the plug on its 1.2 million homeowner policies in Florida , citing the state's punishing price controls.... State Farm's local subsidiary recently requested an increase of 47%, but state regulators refused. State Farm says that since 2000, it has paid $ 1.21 in claims and expenses for every $ 1 of premium income received." On January 10, 2006,

420-455: A focal point , which is natural for both parties to charge. One research paper documenting the phenomenon is Knittel and Stangel, which found that in the 1980s United States, states that fixed an interest rate ceiling of 18 percent had firms charging a rate only slightly below the ceiling. States without an interest rate ceiling had interest rates that were significantly lower. The authors did not find any difference in costs that could explain

560-614: A BBC article reported that since 2003, Venezuela President Hugo Chávez had been setting price ceilings on food and that the price ceilings had caused shortages and hoarding . A January 22, 2008, article from Associated Press stated, "Venezuelan troops are cracking down on the smuggling of food... the National Guard has seized about 750 tons of food.... Hugo Chavez ordered the military to keep people from smuggling scarce items like milk.... He's also threatened to seize farms and milk plants...." On February 28, 2009, Chávez ordered

700-422: A Pandora's Box that threatened to turn his realm into a parody of all he held dear". In the last two of years of his life, Faisal fell into depression over the way his subjects had been seduced into a consumerist lifestyle, becoming lost in a sense of "melancholia". Faisal's son, Crown Prince Mohammad told Lacey in 1981: "The profligacy, the greed, he felt he could not stem it. He become so bound up in his work, there

840-468: A cartel is difficult because it is necessary to agree on quantities and prices, and because each firm will have an incentive to "cheat" by lowering prices to sell more than it agreed to. Antitrust laws make collusion even more difficult because of legal sanctions. Having a third party, such as a regulator, announce and enforce a maximum price level can make it easier for the firms to agree on a price and to monitor pricing . The regulatory price can be viewed as

980-509: A committee to review the Eisenhower-era quota program. Shultz's committee recommended that the quotas be abolished and replaced with tariffs but Nixon decided to keep the quotas due to vigorous political opposition. Nixon imposed a price ceiling on oil in 1971 as demand for oil was increasing and production was declining, which increased dependence on foreign oil imports as consumption was bolstered by low prices. In 1973, Nixon announced

1120-648: A conference in Vienna when it was announced the price for a barrel of oil was to from $ 5 US dollars per barrel to $ 11.65 US dollars per barrel. Faisal was opposed to the price increase, which was largely the work of the Iranian delegation. Over the long term, the oil embargo changed the nature of policy in the West towards increased exploration, alternative energy research, energy conservation and more restrictive monetary policy to better fight inflation. For further details see

1260-661: A corrupt Shah along with the unfulfilled promises of the "Great Civilization" project played a major role in causing the Iranian Revolution of 197–1979 that toppled the Shah and led to the establishment of the Islamic Republic of Iran in February 1979. In Algeria, the "oil shock" led to the establishment of a welfare state where none had existed previously. The lower oil prices of the 1980s along with cutbacks and

1400-457: A few months. Most scholars agree that the 1967 embargo was ineffective. Although some members of the Organization of Arab Petroleum Exporting Countries (OAPEC) supported the use of oil as a weapon to influence the political outcome of the Arab–Israeli conflict , Saudi Arabia had traditionally been the strongest supporter of separating oil from politics. The Saudis were wary of the tactic due to

1540-725: A fixed amount of gold. After 1971, OPEC was slow to readjust prices to reflect this depreciation. From 1947 to 1967, the dollar price of oil had risen by less than two percent per year. Until the oil shock, the price had also remained fairly stable versus other currencies and commodities. OPEC ministers had not developed institutional mechanisms to update prices in sync with changing market conditions, so their real incomes lagged. The substantial price increases of 1973–1974 largely returned their prices and corresponding incomes to former levels in terms of commodities such as gold. Arab oil producing countries had attempted to use oil as leverage to influence political events on two prior occasions—the first

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1680-589: A fundamentalist backlash in Saudi Arabia. On 20 November 1979, Islam's most holiest shrine, the Grand Mosque of Mecca, was seized by a group of fanatics who proclaimed themselves to be the followers of the Mahdi (a messianic figure said to appear at the dawn of every Muslim century to strike down the enemies of Islam). The leader of the uprising, Juhayman al-Otaybi , read out a list of grievances as he accused

1820-608: A global recession and increased tension between the United States and several of its European allies, who faulted the US for provoking an embargo by providing what many viewed as unconditional assistance to Israel. OAPEC demanded a complete Israeli withdrawal from all territories beyond the 1949 Armistice border . The embargo lasted from October 1973 to March 1974. During a summit in Cairo on November 6, Kissinger asked Sadat what Faisal

1960-581: A paper by Sen et al. that found that gasoline prices were higher in states that instituted price ceilings. Another example is the Supreme Court of Pakistan decision regarding fixing a ceiling price for sugar at 45 Pakistani rupees per kilogram. Sugar disappeared from the market because of a cartel of sugar producers and the failure of the Pakistani government to maintain supply even in the stores that it owned. The imported sugar required time to reach

2100-564: A plan to invade Abu Dhabi , Kuwait, and Saudi Arabia. Kissinger publicly threatened "countermeasures" in a Nov 21st, 1973 press conference if the embargo was not lifted, and the Saudis responded with threatening further oil cuts and to burn their oil fields if the US military invaded. After the CIA confirmed these threats, Kissinger gave up military intervention and decided that dealing with Israel's troop withdrawals and settled on diplomatic solutions to

2240-792: A profound shock. The end of what the French called the Trente Glorieuses ("Glorious Thirty" [years]) led to a mood of widespread pessimism in the West with the Financial Times running a famous headline in late 1973 saying "The Future will be subject to Delay". Kurt Waldheim, the secretary-general of the United Nations in an address to the General Assembly complained about "the note of helplessness and fatalism creeping into world affairs". The sudden and abrupt end of

2380-714: A regional, specialized international organization focusing on organizing cooperation in oil development, collective projects, and regional integration. OAPEC consists of the Council of Ministers that holds the supreme authority over the Executive Bureau, the General Secretariat, and the Judicial Tribunal. The Council of Ministers is formed by each member state's minister of petroleum and they work together to construct general policy and ensure

2520-454: A sign of the pro-Israeli slant of American foreign policy. Faisal also felt insulted that Nixon had just promised Saqqaf a "honorable" peace the day before he submitted the request to Congress for some $ 2.2 billion worth of arms for Israel, which he saw as an act of duplicity on Nixon's part. Faisal had been opposed to a total embargo and only agreed to the 5% cut on October 17 under pressure from other Arab states. Faisal felt his efforts on behalf

2660-554: A single one of its stated objectives. The ceasefire which the USA and the USSR together imposed two days later upon Israel, Syria and Egypt would have been imposed in any case; Israel ended the October war, thanks to US aid, better equipped militarily than she had ever been before, and Faisal's ambition to shrink Israel back inside her pre-1949 boundaries remains unfulfilled to this day. Nor did

2800-586: A support of show for the independence movements in Portugal's African colonies), but the shortage of oil in the United States led to sharp price rises in all of the European nations. The embargo itself did not cause much economic difficulty in the United States as the Americans simply imported more oil from nations that were not part of the embargo such as Iran, but the 400% increase in the price of oil caused by

2940-532: A unified OAPEC oil embargo was never again possible. In 1979, Egypt was expelled from OAPEC for signing the Camp David Accords , although it was readmitted a decade later. In 1982, the Arab League's Arab Petroleum Congress (founded in 1959) merged into OAPEC's Arab Energy Conference (founded in 1979), which has continued to meet periodically through at least 2014. OAPEC is regarded as

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3080-522: A weekly basis for the entire year as the prosperity led to a real estate speculation bubble that was often compared to the Klondike gold rush of 1898–1899. At the Red Sea port of Jeddah , there were so many ships queuing up laden with cement for the construction boom in Saudi Arabia that construction contractors hired helicopters to fly the cement in, twenty bags per flight. A number of families engaged in

3220-441: Is a substantial body of research showing that under some circumstances price ceilings can, paradoxically, lead to higher prices. The leading explanation is that price ceilings serve to coordinate collusion among suppliers who would otherwise compete on price. More precisely, firms forming a cartel becomes profitable by enabling nominally competing firms to act like a monopoly , limiting quantities and raising prices. However, forming

3360-628: Is led by the Secretary General, who is currently Jamal Essa Al Loughani, and includes four departments: Finance and Administrative Affairs; Information and Library; Economics; and Technical Affairs. The Economics Department and the Technical Affairs Department jointly form the Arab Center for Energy Studies, established in 1983. The Judicial Tribunal mitigates disputes between member states; interpretations of

3500-477: The "drain America first" policy. Some scholars believe the policy contributed to the decline of domestic US oil production in the early 1970s. The cheapness of oil compared with coal led to the decline of the coal industry. In 1951, 51% of America's energy came from coal, and by 1973, only 19% of America's industry was coal-based. When Richard Nixon became president in 1969, he assigned George Shultz to head

3640-649: The Bar Lev Line in the Sinai Peninsula and Syria launched an offensive in the Golan Heights , both of which had been occupied by Israel during the 1967 Six-Day War . The war began during the height of the Watergate scandal and Nixon largely let Kissinger manage foreign policy as he was distracted by the scandal. On 8 October 1973, Faisal told two Egyptian envoys: "You have made us all proud. In

3780-510: The Khartoum Conference . OAPEC was originally intended to be a conservative Arab political organization which, by restricting membership to countries whose main export was oil, would exclude governments seen as radical – such as those of Egypt and Algeria . This organizational exclusivity was bolstered by an additional rule in the organization's charter requiring the three founders' approval of all new members. The original aim

3920-769: The Yom Kippur War . On 16 October, ten days after the war's start, Kuwait hosted separate meetings of both OAPEC and the Persian Gulf members of OPEC , including Iran. OAPEC resolved to cut oil production by 5% monthly "until the Israeli forces are completely evacuated from all the Arab territories occupied in the June 1967 war". The embargo would last for some five months before it was lifted in March 1974 after negotiations at

4060-434: The "Energy crisis" series by Facts on File. The effects of the embargo were immediate. OPEC forced oil companies to increase payments drastically. The price of oil quadrupled by 1974 from US$ 3 to nearly US$ 12 per 42 gallon barrel ($ 75 per cubic meter), equivalent in 2018 dollars to a price rise from $ 17 to $ 61 per barrel. Saudi Arabia had 25% of the world's oil, but only 4% of the oil used in the United States in 1973 came from

4200-521: The "long summer" of prosperity in 1973-1974 played a major role in the pessimistic mood that characterized the culture of the rest of the 1970s. In 1975, a report to Congress from the Federal Energy Administration estimated that the embargo of 1973–1974 had caused about 500,000 Americans to lose their jobs and caused a GNP loss between $ 10 billion–$ 20 billion. This price increase had a dramatic effect on oil exporting nations, for

4340-724: The "oil shock" allowed for Chairman Houari Boumédiène of Algeria to become a global leader, courted by elites in both the First World and the Third World. The oil embargo led a sudden interest in the Palestinian issue. Between 1973 and 1981, Saudi Arabia donated a sum worth $ 1 billion US dollars to the Palestine Liberation Organization , which thus had a budget that exceeded that of many Third World nations. On November 8, 1973, Kissinger became

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4480-536: The "oil shock" was not King Faisal, but rather the Shah. Some of the nations that were classified as "friendly" to the Arab viewpoint in regards to the Arab-Israeli dispute such as France and Belgium were the ones who suffered the most from the worldwide inflation caused by the embargo. The crisis eased when the embargo was lifted in March 1974 after negotiations at the Washington Oil Summit, but

4620-507: The "peace of the brave" (i.e. a victorious leader being magnanimous to his defeated opponents) meant there was a possibility that Sadat at least would make peace with Israel provided that the war ended in such a way that Egypt was not perceived to be defeated. Likewise, Kissinger regarded Meir as being rather arrogant and believed that an armistice that ended the war in a manner that was not an unambiguous Israeli victory would make her more humble. As both Syria and Egypt lost much equipment during

4760-419: The $ 850 million worth of arms requested sent a request to Congress for some $ 2.2 billion worth of arms to Israel, which was promptly approved. Nixon, whose administration was being badly battered by the Watergate scandal, felt that a bold foreign policy move might resuscitate his administration. Nixon later boasted in his memoirs that the U.S. Air Force flew more sorties to Israel in October 1973 than it had during

4900-409: The 1930s, Ron Todd , moving to the rival VFA , because he was dissatisfied with the maximum pay that he could receive at Collingwood . As a result of World War II, the wage for a regular game was halved (to £1 and 10 shillings) for the 1942–45 seasons. After the war, the ceilings were modified several times in line with inflation . During the 1950s, the "Coulter law" was also blamed for shortening

5040-656: The 1967 Six-Day War . In an effort that was led by Faisal of Saudi Arabia , the initial countries that OAPEC targeted were Canada , Japan , the Netherlands , the United Kingdom , and the United States . This list was later expanded to include Portugal , Rhodesia , and South Africa . In March 1974, OAPEC lifted the embargo, but the price of oil had risen by nearly 300%: from US$ 3 per barrel ($ 19/ m ) to nearly US$ 12 per barrel ($ 75/m) globally. Prices in

5180-556: The American nuclear industry as a way to achieve "energy independence" from the Middle East. On 7 November 1973, Nixon in an address to Congress called for Project Independence to make the United States self-sufficient in energy by 1980, which called for a massive investment in the nuclear industry. Nixon seems to have assumed that nuclear energy was economical, and was encouraged by the faddish enthusiasm of many officials who more on

5320-425: The American oil imports came from the Middle East. Throughout the 1960s, the price for a barrel of oil remained at $ 1.80, meaning that with the effects of inflation considered the price of oil in real terms got progressively lower and lower throughout the decade with Americans paying less for oil in 1969 than they had in 1959. Even after a price for a barrel of oil rose to $ 2.00 in 1971, adjusted for inflation, people in

5460-467: The Arab states. The weapon was aimed at the United States, Great Britain, Canada, Japan and the Netherlands. These target governments perceived that the intent was to push them towards a more pro-Arab position. Production was eventually cut by 25%. However, the affected countries did not undertake dramatic policy changes. The risk that the Middle East could become another superpower confrontation with

5600-802: The Arctic. Finding oil and developing new fields usually required five to 10 years before significant production. The average US retail price of a gallon of regular gasoline rose 43% from 38.5¢ in May 1973 to 55.1¢ in June 1974. State governments asked citizens not to put up Christmas lights. Oregon banned Christmas and commercial lighting altogether. Politicians called for a national gasoline rationing program. Nixon asked gasoline retailers to voluntarily not sell gasoline on Saturday nights or Sundays; 90% of gas station owners complied, which produced long lines of motorists wanting to fill up their cars while they still could. The "oil shock" provided considerable impetus to

5740-599: The Berlin Airlift of 1948–49, flying in a gargantuan quantity of arms, though he also admitted that by the time the arms lift had begun, the Israelis had already "turned the tide of battle" in their favor, making the arms lift irrelevant to the outcome of the war. In an interview with the British historian Robert Lacey in 1981, Kissinger later admitted about the arms lift to Israel: "I made a mistake. In retrospect it

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5880-605: The British Chancellor of Exchequer, Anthony Barber , and the Trade Secretary, Peter Walker . In a role-reversal, Barber and Walker paid homage to the Shah, who promised them that his nation would sell the United Kingdom 5 million tons of oil in exchange for some £100 million of British goods to aid his plans to industrialize Iran. Saudi Arabia experienced an upsurge of prosperity and affluence after

6020-682: The Cold War rather than Middle Eastern politics, both seeing the Soviet arms lifts to Egypt and Syria as a Soviet power play that required an American answer. On October 12, 1973, US president Richard Nixon authorized Operation Nickel Grass , a strategic airlift to deliver weapons and supplies to Israel in order to replace its materiel losses, after the Soviet Union began sending arms to Syria and Egypt. The first American weapons to Israel arrived only on 15 October 1973, and despite Nixon's orders

6160-617: The Egyptian Sinai Peninsula , which resulted in Egypt closing the Suez Canal for eight years . Following the Yom Kippur War , the canal was cleared in 1974 and opened again in 1975. OAPEC countries cut production of oil and placed an embargo on oil exports to the United States after Richard Nixon requested $ 2.2 billion to support Israel's war effort. Nevertheless, the embargo lasted only until January 1974, though

6300-458: The House of Saud of being corrupt and degenerate as he listed by name a number of Saudi princes who were engaged in dubious business dealings and/or who drank alcohol. The Saudi Army recaptured the Grand Mosque and the surviving "renegades" as the rebels were labelled were executed. Likewise, the perception that that most of the wealth being generated by the now higher price of oil was being stolen by

6440-433: The Iranian delegation left Kuwait City as the Shah of Iran was only interested in higher oil prices. The Oil Minister of Iraq, Sa'dun Hammadi demanded the "total nationalization" of all assets of American oil companies in the Middle East, the withdrawal of all Arab funds from the United States and for all Arab states to break diplomatic relations with the United States. The Libyan Oil Minister, Izz al-Din al-Mabruk, called for

6580-500: The Japanese Foreign Minister Masayoshi Ōhira flew in to Riyadh to meet King Faisal for "talks on improving bilateral relations". Shortly afterwards, the French foreign minister Michel Jobert arrived to sign an agreement that provided oil for France for the next twenty years. On January 24, 1974, as the Shah of Iran, Mohammad Reza Pahlavi , was coming off the ski slopes of St. Moritz , he was met by

6720-517: The Japanese and West German automobile industries, sending the American automobile industry into decline. The years from 1945 to 1973 had been a period of unprecedented prosperity in the West, a "long summer" that many believed would never end, and its abrupt end in 1973 as the oil embargo which increased the price of oil by 400% within a matter of days threw the world's economy into a sharp recession with unemployment mounting and inflation raging came as

6860-535: The Middle East. In the early 1960s Libya , Indonesia and Qatar joined OPEC. OPEC was generally regarded as ineffective until political turbulence in Libya and Iraq strengthened their position in 1970. Additionally, increasing Soviet influence provided oil producing countries with alternative means of transporting oil to markets. Under the Tehran Price Agreement of 1971 , signed on February 14,

7000-553: The Middle East. Saudi Arabia spent over 100 billion dollars in the ensuing decades for helping spread its fundamentalist interpretation of Islam, known as Wahhabism , throughout the world, via religious charities such as the al-Haramain Foundation , which often also distributed funds to violent Sunni extremist groups such as Al-Qaeda and the Taliban. The 400% increase in the world oil prices led to extravagant promises being made by

7140-469: The OAPEC Agreement; disputes with a petroleum company operating in its member states' territory, and anything else that falls into OAPEC's jurisdiction or that the Council of Ministers submits to the tribunal. The Judicial Tribunal must unevenly consist of at least seven and no more than eleven judges from Arab countries. The tribunal's judgments are final and binding, and will be enforceable within

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7280-576: The Saudi construction industry such as the Juffali, Alireza, al-Khasshoggi and the bin Laden families all become very wealthy as a result of the construction boom. The period after the oil shock of 1973–1974 is still fondly remembered in Saudi Arabia as the "age of abundance" where nearly everyone had a significant increase in their standard of living. The wealth and corruption generated by the oil shock led to

7420-486: The Soviet military personnel in Egypt in a signal that he wanted better relations with the United States. Kissinger was taken completely by surprise by Sadat's move, saying: "Why has he done me this favor? Why didn't he demand all sorts of concessions first?" Sadat expected as a reward that the United States would respond by pressuring Israel to return the Sinai to Egypt, but after his anti-Soviet move prompted no response from

7560-674: The Suez War. If the United States had done the same after 1967, we would not have witnessed the this deterioration... Before the Jewish State was established, there existed nothing to harm good relations between Arabs and Jews. There were many Jews in Arab countries. When the Jews were persecuted in Spain, Arabs protected them. When the Romans drove the Jews out, Arabs protected them. At Yalta, it

7700-408: The USSR was of more concern to Washington than oil. Further, interest groups and government agencies more worried about energy were no match for Kissinger's dominance. In the US production, distribution and price disruptions "have been held responsible for recessions, periods of excessive inflation, reduced productivity, and lower economic growth." Some researchers regard the 1973 "oil price shock" and

7840-514: The United States were not being appreciated in Washington, which increased his fury at Nixon. Saudi Arabia only consented to the embargo after Nixon's promise of $ 2.2 billion in military aid to Israel. On the afternoon of October 19, 1973, Faisal was in his office when he learned about the United States sending $ 2.2 billion worth of weapons to Israel, and discussed the issue with two of his closest advisers, Abdullah ibn Abdul Rahman and Rashad Pharaon. The king called Yamani at about 8 pm, and told him he

7980-468: The United States were significantly higher than the global average. After it was implemented, the embargo caused an oil crisis, or "shock", with many short- and long-term effects on the global economy as well as on global politics. The 1973 embargo later came to be referred to as the "first oil shock" vis-à-vis the "second oil shock" that was the 1979 oil crisis , brought upon by the Iranian Revolution . Ever since Israel declared independence in 1948 there

8120-501: The United States, by November 1972 Sadat moved again closer to the Soviet Union, buying a massive amount of Soviet arms for a war he planned to launch against Israel in 1973. For Sadat, cost was no object as the money to buy Soviet arms came from Saudi Arabia. At the same time, Faisal promised Sadat that if it should come to war, Saudi Arabia would embargo oil to the West. In April 1973, the Saudi Oil Minister Ahmed Zaki Yamani visited Washington to meet Kissinger and told him that King Faisal

8260-411: The United States, the Netherlands, Rhodesia , South Africa, and Portugal. On October 17–19, 1973, the Saudi Foreign Minister, Omar Al Saqqaf , visited Washington together with the foreign ministers of Algeria, Kuwait and Morocco to warn that there was a real possibility of an oil embargo being imposed. Saqqaf complained to King Faisal that Nixon seemed more interested in a dispute about "a burglary" (i.e.

8400-476: The Washington Oil Summit. The embargo's after-effects would linger through the rest of the decade and beyond. For the oil-exporting countries, the embargo was the first experience of leveraging their collective production for political gains. A number of the member nations would use this sense of control to renegotiate the contracts they had made with the companies that had discovered and exploited their resources. The vastly increased revenues would prove addictive, and

8540-406: The Watergate scandal) than about the October War. During a press conference, an American reporter mocked the threat, contemptuously saying the Saudis "could drink their oil", leading Saqqaf to reply in anger "All right, we will!". Joined by the foreign ministers of Algeria, Kuwait and Morocco, Saqqaf met with Nixon in the Oval Office who promised him that the United States would mediate a settlement to

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8680-460: The Western nations were paying less for oil in 1971 than they had in 1958. The extremely low price of oil served as the basis for the " long summer " of prosperity and mass affluence that began in 1945. The Organization of Petroleum Exporting Countries (OPEC), was founded by five oil producing countries at a Baghdad conference on September 14, 1960. The five founding members of OPEC were Venezuela , Iraq , Saudi Arabia , Iran and Kuwait . OPEC

8820-602: The accompanying 1973–74 stock market crash as the first discrete event since the Great Depression to have a persistent effect on the US economy. The embargo had a negative influence on the US economy by causing immediate demands to address the threats to U.S. energy security. On an international level, the price increases changed competitive positions in many industries, such as automobiles. Macroeconomic problems consisted of both inflationary and deflationary impacts. The embargo left oil companies searching for new ways to increase oil supplies, even in rugged terrain such as

8960-423: The aftermath of the October riots, President Chadli Bendjedid began a transition to democracy. The first free elections in Algeria in January 1992 were won by the Islamist FIS, which led to a military coup and an outbreak of civil war that was to kill hundreds of thousands. OPEC-member states raised the prospect of nationalization of oil company holdings. Most notably, Saudi Arabia nationalized Aramco in 1980 under

9100-490: The availability of oil from non-Arab oil producing countries, and in the decades leading up to the crisis, the region's conservative monarchies had grown dependent on Western support to ensure their continued survival as Nasserism gained traction. On the other hand, Algeria, Iraq and Libya had strongly supported the use of oil as a weapon in the conflict. Arab newspapers like the Egyptian Al-Ahram , Lebanese An-Nahar and Iraqi Al-Thawra had historically been supportive of

9240-435: The basis of faith than rationality saw nuclear energy as the technology of the future. By the late 1960s, a lively environmentalist movement had emerged in the United States, and the Project Independence nuclear program was the subject of much debate in both the media and Congress. The ensuing debates revealed that many of the claims made for nuclear power vast underestimated the true costs of nuclear reactors. Equally problematic

9380-407: The beginning of the Great Depression . In 1930, a new ceiling system, formulated by VFL administrator George Coulter, stipulated that individual players were to be paid no more than A£ 3 (approximately A$ 243 in 2017) for a regular home-and-away match, that they must also be paid if they were injured, that they could be paid no more than A£12 (approximately A$ 975 in 2017) for a finals match, and that

9520-421: The belief that the FLN regime was corrupt helped cause the riots of October 1988 against the FLN regime that killed at least 500 people. The riots were largely caused by the fact that the low oil prices had forced the Algerian state to end many of its more generous social policies between 1986 and 1988, leading to an unemployment rate of 30% by 1988 along with the knowledge that the FLN regime had stolen millions. In

9660-404: The careers of star players such as John Coleman and Brian Gleeson , as they and their clubs could not pay for the private surgery that the players required to continue their careers. The Coulter law was abolished in 1968. However, in 1987 a club-level salary cap was introduced by the VFL and has been retained by its successor, the Australian Football League (AFL). On February 4, 2009,

9800-409: The cartoons as a sort of shorthand for insatiable greed. Organization of Arab Petroleum Exporting Countries On 9 January 1968, three of the then–most conservative Arab oil states – Kuwait , Libya , and Saudi Arabia – agreed at a conference in Beirut , Lebanon to found the Organization of Arab Petroleum Exporting Countries, aiming to separate the production and sale of oil from politics in

9940-400: The case for nuclear power in the ensuring debates. By 1989, only 18% of American energy came from nuclear power plants, which was a faction of what Project Independence had envisioned in 1973. The "oil shock" led to anti-Arab feelings becoming common. Cartoons published in American newspapers during the "oil shock" depicted Arabs as disgusting, ugly, obese, corrupt and greedy. In the cartoons,

10080-679: The ceiling payment of £3 per game fell below the legal minimum award wage . While players at the more successful clubs of the day, such as Richmond , had previously paid significantly higher average wages, clubs that were struggling financially often could not meet the ceiling under the Coulter law. Clubs with a longstanding amateur ethos became significantly more competitive under the Coulter law, such as Melbourne , which had long attracted and retained players by indirect or non-financial incentives (such as finding players employment not related to football). The Coulter law led to at least one VFL star of

10220-551: The civil war of 1967-1970 and to address the complaints that too much of Nigeria's oil wealth went to the federal government in Lagos instead of the people. In Iran, the Shah who was aware by 1974 that he had developed the cancer that was to ultimately kill him in 1980 pushed very strongly for his "Great Civilization" for rapid modernization not the least because he wanted to see the "Great Civilization" before his death, which explained his grandiose announcements. The new wealth generated by

10360-506: The countries of the Middle East who had long been dominated by the industrial powers were seen to have taken control of a vital commodity. The oil-exporting nations began to accumulate vast wealth. Some of the income was dispensed in the form of aid to other underdeveloped nations whose economies had been caught between higher oil prices and lower prices for their own export commodities, amid shrinking Western demand. Much went for arms purchases that exacerbated political tensions, particularly in

10500-451: The demand being made that the government find some other community to store the rods. Many of the nuclear reactors ordered in 1973 were cancelled due to the horrendous cost overruns while over 100 nuclear plants were shut down as uneconomical over the next 10 years. Unlike nations that tried to use nuclear power as a way for "energy independence" such as France and Sweden, the United States had substantial reserves of its own oil, which weakened

10640-411: The distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or below a price ceiling (maximum resale price maintenance) or at or above a price floor . Isabella Weber and her colleagues argue for price caps to combat sellers' inflation . Paul Krugman changed his mind and expressed interest in adding price caps to the toolkit to flight inflation. There

10780-550: The dollar inconvertible to gold directly, except on the open market, and was soon dubbed the Nixon Shock , leading eventually to the collapse of the Bretton Woods system in 1976. Because oil was priced in dollars, oil producers' real income decreased when the dollar started to float free of the old link to gold. In September 1971, OPEC issued a joint communiqué stating that from then on, they would price oil in terms of

10920-470: The effects lingered throughout the 1970s. The dollar price of energy increased again the following year, amid the weakening competitive position of the dollar in world markets. The Arab oil embargo ended the long period of prosperity in the West that had begun in 1945, throwing the world's economy into the steepest economic contraction since the Great Depression. The "long summer" of prosperity in

11060-458: The embargo did damage the American economy. A number of nations such as Venezuela, Nigeria, Iran and Iraq increased their oil production during the embargo, but just sold their oil at a higher price. The leader who pushed the most for higher oil prices was the Shah of Iran, and the Italian historian Giuliano Garavini has argued that the leader most responsible for the West's economic problems during

11200-617: The embargo was a failure because the countries that were targeted by the embargo did not change their policies on the Arab–Israeli conflict. Licklieder believed that any long term changes were caused by the OPEC increase in the posted price of oil, and not the OAPEC embargo. Daniel Yergin , on the other hand, has said that the embargo "remade the international economy". Lacey wrote: "King Faisal's momentous oil embargo of 20 October 1973 did not achieve

11340-405: The end of the quota system. Between 1970 and 1973 US imports of crude oil had nearly doubled, reaching 6.2 million barrels per day in 1973. Until 1973, an abundance of oil supply had kept the market price of oil lower than the posted price. In 1970, American oil production peaked and the United States began to import more and more oil as oil imports rose by 52% between 1969 and 1972. By 1972, 83% of

11480-404: The event of an investment bubble, or in the event of monopoly ownership of a product, all of which can cause problems if imposed for a long period without controlled rationing, leading to shortages . Further problems can occur if a government sets unrealistic price ceilings, causing business failures, stock crashes, or even economic crises. On the other hand, price ceilings give a government to

11620-453: The fact that The Protocols had been exposed as a forgery in 1921. Initially, Secretary of Defense James Schlesinger suggested to Kissinger that the USA invade Saudi Arabia and another Arab countries and seize their oil fields. Kissinger stated in a private state department meeting that it's “ridiculous that the civilized world is held up by 8 million savages... Can’t we overthrow one of the sheikhs just to show that we can do it?” They formed

11760-653: The fighting, the Soviet Union began to fly new equipment in starting on October 12, and the Soviet flights to Syria and Egypt were recorded by the British radar stations in Cyprus. Though the Soviets were flying in an average of 60 flights per day, exaggerated accounts appeared in Western newspapers speaking of "one hundred flights per day". At this point, both Nixon and Kissinger began to see the October War more in terms of

11900-532: The fighting. So we agreed to cut back production by just 5 percent per month. A full embargo, we agreed, was something we would implement only if we felt that things were absolutely hopeless". At an OPEC summit at the Sheraton Hotel in Kuwait City on October 16, 1973, it was announced the price of oil would go from $ 3.01 U.S. dollars per barrel to $ 5.12 per barrel. After agreeing to the price increase,

12040-583: The first Secretary of State to meet with a Saudi leader since 1953 as he met King Faisal to ask him to end the embargo. Within two week of the embargo being launched, all of the foreign ministers of the nations of the European Economic Community (now the European Union) met in a conference to issue a statement calling for Israel "to end the territorial occupation which has maintained since the conflict of 1967". On December 11, 1973,

12180-432: The handicapped, single parents, elderly, and others who are not able to queue for days. They cause inefficient allocation, as apartments are not bought by those willing to pay the most for them. Also, those who get an apartment are unwilling to leave it, even when their family or work situation changes, as they may not sell it at what they feel the market price should be. The inefficiencies increase apartment shortage and raise

12320-402: The king end the oil embargo after Sadat, whom he trusted, reported to him that the United States was being more "evenhanded" and after Kissinger had promised to sell Saudi Arabia weapons that it had previously denied under the grounds that they might be used against Israel. More importantly, Saudi Arabia had billions of dollars invested in Western banks, and the massive bout of inflation set off by

12460-475: The kingdom. However, Saudi Arabia plays an over-sized role within the Arab world, and as a Beirut oil consultant noted in 1974: "If Saudi Arabia moves from A to B, then every other oil producer must move at least as far, if not to C." In 1973, about 25% of the oil used in the United States came from Arab countries. The mere shortage of oil caused by the Arab oil embargo within the United States forced prices to raise, which in turn led prices to rise everywhere all over

12600-552: The leaders of oil-producing nations. The Shah of Iran told his subjects in a speech in December 1973 that he was launching "Great Civilization" project that would make Iran into a First World nation by the 1990s; President Carlos Andrés Pérez of Venezuela likewise launched his Le Gran Venezuela project intended to make Venezuela into a First World nation; and President Yakubu Gowon of Nigeria told his people that henceforward Nigeria's main problem would be "managing abundance". After

12740-439: The leadership of Saudi oil minister Ahmed Zaki Yamani . As other OPEC nations followed suit, the cartel's income soared. Saudi Arabia undertook a series of ambitious five-year development plans. The biggest began in 1980, funded at $ 250 billion. Other cartel members also undertook major economic development programs. Control of oil became known as the "oil weapon". It came in the form of an embargo and production cutbacks from

12880-409: The long hooked Semitic noses that had traditionally been featured in anti-Jewish cartoons were applied to the Arab sheiks as a way to illustrate their supposed greed. American public opinion did not see the use of the "oil weapon" as due to politics, and tended to explain the embargo as only due to the excessive greed of King Faisal and the other Arab leaders, hence the use of the hooked Semitic nose in

13020-538: The market price of other apartments. Uniform wage ceilings were introduced in Australian rules football to address uneven competition for players. In the Victorian Football League (VFL) a declining competitive balance followed a 1925 expansion that had affected clubs such as Footscray , Hawthorn and North Melbourne . The effects on financially weaker clubs were exacerbated in 1929 by

13160-459: The military to seize control of all the rice processing plants in the country temporarily and to force them to produce at full capacity. He alleged they had been avoiding doing so in response to the price caps. On January 3, 2007, an International Herald Tribune article reported that Chávez's price ceilings were causing shortages of materials used in the construction industry. According to an April 4, 2008, article from CBS News , Chávez ordered

13300-786: The nationalization of all the assets of all Western oil companies in the Middle East. The news about the war on October 16 was grim from the Arab viewpoint with the Syrians steadily being pushed back while Israelis had opened a counter-offensive against the Egyptians and crossed the Great Bitter Lake. The Saudi delegation led by Yemani, supported by the Algerian delegation, fought hard against the Iraqi and Libyan demands for an embargo as Yemani maintained that forcing through an increase in

13440-501: The nationalization of the cement industry, which had been exporting its products to receive higher prices outside the country. The Domestic Gas and Electricity (Tariff Cap) Act 2018 (c. 21) introduced a default tariff energy price cap in England, Wales and Scotland as part of the UK's energy policy , to safeguard the 11 million households on standard variable tariffs. Another example is

13580-584: The number of American planes flying into Tel Aviv were initially limited. After the first week of the war, the Israelis had halted the Syrian offensive in the Golan Heights and were pushing back the Syrians back towards Damascus, but along the Suez canal, there was heavy fighting with the Egyptians holding their own. Yamani stated in a 1981 interview: "The king still wanted to give America a chance to stay out of

13720-444: The odds of making peace along the lines of United Nations Security Council Resolution 242 calling for a "land for peace" deal if an armistice was signed with Egypt and Syria gaining some territory in the Sinai and the Golan Heights respectively. Nixon had ordered an arms lift to Israel on 12 October 1973, but Kissinger used the excuse of bureaucratic delays to limit the amount of weapons and ammunition sent to Israel. The Arab concept of

13860-493: The oil embargo was a threat to this fortune as inflation eroded the value of the money, giving Faisal a vested interest in helping to contain the damage he himself inflicted on the economies of the West. Since Israeli forces did not withdraw to the 1949 Armistice Line, the majority of scholars believe that the embargo was a failure. Roy Licklieder, in his 1988 book Political Power and the Arab Oil Weapon , concluded that

14000-489: The oil embargo whose consequences horrified King Faisal. Faisal who was devoted to a harsh puritanical strain of Sunni Islam known in the West as Wahhabism was appalled by the way that his subjects became materialistic, devoted only to conspicuous consumption and greed as they lost interest in Islam. Lacey wrote: "The spiritual dangers of easy affluence distressed him more. His simple gesture of piety and honor seemed to have opened

14140-472: The oil embargo, oil exports from the Middle East to the West were down by 60–70% by November 1973. Japan and the nations of western Europe imported some 75% of their oil from the Near East, and the embargo led to immediate and sharp price raises as Lacey noted that "competing desperately for dwindling supplies, consumers showed themselves willing to pay unparalleled money for their oil". Saudi Arabia had 25% of

14280-465: The oil embargo. On November 7, 1973, Kissinger flew to Riyadh to meet King Faisal and ask him to end the oil embargo in exchange for promising to be "evenhanded" with the Arab-Israeli dispute. As the plane carrying him prepared to land in Riyadh, Kissinger was clearly nervous at the prospect of negotiating with the stern Wahhabi Faisal who had a marked dislike of Jews. Kissinger discovered that King Faisal

14420-463: The oil shock, Nigeria presented itself as the first African nation that would reach First World status and in Lagos a series of stately modernist buildings were erected as appropriate for a nation that saw itself as the leader of all black Africa. Much of the oil wealth in Nigeria was stolen by corrupt politicians. However, at least some of Nigeria's new oil wealth went to rebuild the areas devastated by

14560-425: The organization's goals and actions are being achieved and implemented. The Executive Bureau assists the Council of Ministers by meet at least three times a year to review the budget, approve staff regulations, and develops an agenda for the Council of Ministers depending on their analyses of the organizations activities. One senior official from each member state serves on the Executive Bureau. The General Secretariat

14700-550: The past we could not lift our heads up. Now we can". Faisal promised to give to Egypt a quality of aid worth $ 200 million US dollars to assist with the war effort, and stated he was willing to use the "oil weapon" if necessary to support Egypt. Kissinger promised the Israeli Prime Minister Golda Meir the United States would replace its losses in equipment after the war, but sought initially to delay arm shipments to Israel as he believed it would improve

14840-399: The post-war years had made possible the "swinging sixties" and the related rise of a rebellious youth culture as it was very easy to be hedonist and/or in rebellion against traditional values in a time of unprecedented affluence and prosperity. Lacey wrote about the impact of the Arab oil embargo of 1973–74 that for people in the West life suddenly become "slower, darker and chiller" as gasoline

14980-402: The posted price of oil was increased and, due to a decline in the value of the US dollar relative to gold, certain anti-inflationary measures were enacted. Because of a severe drain on U.S. gold reserves, leading to higher inflation and lack of confidence in the strength of the dollar, President Nixon issued Executive Order 11615 on August 15, 1971, closing the " gold window ". This action made

15120-435: The power to prevent corporations from price gouging or otherwise setting prices that create negative outcomes for the government's society. While price ceilings are often imposed by governments, there are also price ceilings that are implemented by non-governmental organizations such as companies, such as the practice of resale price maintenance . With resale price maintenance, a manufacturer and its distributors agree that

15260-569: The price of oil remained high afterwards. By 1969, American domestic output of oil was peaking and could not keep pace with increasing demand from vehicles. The U.S. was importing 350 million barrels (56 million cubic metres) per year by the late 1950s, mostly from Venezuela and Canada . Because of transportation costs and tariffs, it never purchased much oil from the Middle East. In 1973, US production had declined to 16% of global output. Eisenhower imposed quotas on foreign oil that would stay in place between 1959 and 1973. Critics called it

15400-514: The price of oil was the best way to influence the United States. Hammadi and the rest of the Iraqi delegation left in a huff as Yemani had won over the majority of the delegations to the Saudi viewpoint. The statement issued after midnight at the Sheraton Hotel was handwritten and reflecting the tense talk had several paragraphs crossed out while other paragraphs were written in by different hands. On October 17, Arab oil producers cut production by 5% and instituted an oil embargo against Israel's allies:

15540-401: The principal source) of a prospective member nation; and Algeria, Iraq, Syria and Egypt had been admitted. Consequently, OAPEC became a much more activist organization, contrary to the original intention. The 1973 oil crisis was a turning point for the organization. In October of that year, the forces of Egypt and Syria attempted to overwhelm the state of Israel in an offensive later known as

15680-407: The result. Rent Controls were instituted in the US in the 1940s by then-president Franklin D. Roosevelt and his newly-formed Office of Price Administration . The Office instituted price ceilings on a wide range of commodities, including rent controls that allowed returning World War II veterans and their families to afford housing. Following the predictions of economic models, this policy lowered

15820-518: The second summit of Islamic states in Lahore (which, unlike the first summit that Faisal had chaired in 1969, was not boycotted by Iraq and Syria) where he was acclaimed as a conquering hero who humiliated and humbled the West by wrecking its economy. The prime minister of Pakistan, Zulfikar Ali Bhutto, opened the conference by stating: "The armies of Pakistan are the armies of Islam. We shall enter Jerusalem as brothers-in-arms!" Only on March 18, 1974 did

15960-575: The supply of rentable properties available to veterans. At the same time, there was an increase in homeownership and the number of homes for sale. This outcome could be explained by landowners converting their rentable property to sellable property, due to the financial unviability of rental markets and no incentive by the landowner to destroy their property or leave it vacant. According to professors Niko Määttänen and Ari Hyytinen, price ceilings on Helsinki City Hitas apartments are highly inefficient economically. They cause queuing and discriminate against

16100-490: The territories of residing members. As of December 2020, OAPEC has 11 members countries, 6 of which are also OPEC members: Price ceiling A price ceiling is a government- or group-imposed price control , or limit, on how high a price is charged for a product, commodity, or service. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive. Such conditions can occur during periods of high inflation, in

16240-499: The use of oil as a weapon. In 1970, President Nasser of Egypt died and was succeeded by Anwar Sadat , a man who believed in the diplomacy of surprise, in engaging in sudden moves to upset the diplomatic equilibrium. Sadat liked to say that his favourite game was backgammon , a game where skill and persistence was rewarded, but was best won by sudden gambles, making an analogy between how he played backgammon and conducted his diplomacy. Under Nasser, Egypt and Saudi Arabia had engaged what

16380-400: The wages could not be augmented with other bonuses or lump-sum payments. The "Coulter law", as it became known, remained a strictly binding price ceiling through its history. During its early years, the Coulter law adversely affected only a minority of players, such as stars and players at wealthier clubs. Those individuals experienced, in effect, a drastic cut in wages. For instance, from 1931

16520-523: The wake of the halfhearted 1967 oil embargo in response to the Six-Day War . Such use of the economic weapon of oil embargo in the struggle against Israel had been regularly proposed at Arab Petroleum Congresses, but it took the Six-Day War for the embargo to happen. However, Saudi Arabia's oil production was up by 9% that year, and the main embargo lasted only ten days and was completely ended by

16660-571: The war that would be "peaceful, just and honorable" to both sides. Saqqaf reported to King Faisal that Nixon told him that he ended the Vietnam war on an honorable basis and now intended to end the October war in the same manner. Israel took heavy losses in men and material during the fighting against Egypt and Syria, and on October 18, 1973, Meir requested $ 850 million worth of American arms and equipment to replace its material losses. Nixon decided characteristically to act on an epic scale and instead of

16800-415: The warning that Faisal was considerably tougher, more intelligent and more ruthless than his half-brother Saud whom he had deposed in 1964, and his threats were serious. Kissinger declined to meet the four CEOs. In an assessment done by Kissinger and his staff about the Middle East in the summer of 1973, the repeated statements by Sadat about waging  jihad against Israel were dismissed as empty talk while

16940-476: The warnings from King Faisal were likewise regarded as inconsequential. In September 1973, Nixon fired Rogers as Secretary of State and replaced him with Kissinger. Kissinger was later to state he had not been given enough time to know the Middle East as he settled into the State Department's office at Foggy Bottom as Egypt and Syria attacked Israel on October 6, 1973. On October 6, 1973, Egypt attacked

17080-532: The withholding of the 638,500 barrels of oil which the Saudi Arabia had been selling to America every day for the first 10 months of 1973 ever come, in itself, to jeopardizing the power or diverting the policies of the United States, since it accounted for less than 4 percent of America's daily 17 million barrel consumption. It was the interaction which Faisal's embargo had with other forces that made it so decisive. Arab politics had an immediate multiplier effect". Because every Arab state except for Iraq and Libya joined

17220-572: The world as oil producers that had not joined the embargo such as Iran, Venezuela, Libya and Iraq demanded higher prices in Japan and Europe as an initiative to ship oil to those places instead of the United States, thus settling off a worldwide inflationary spiral. The only European nations subject to the oil embargo were the Netherlands (because the Dutch Foreign Minister Max van der Stoel was strongly pro-Israeli) and Portugal (in

17360-450: The world's oil reserves and the embargo imposed on the United States led to shortages of oil in the United States, which set an inflationary spiral as the new high prices for oil in the American market led to sharp increases of the price of oil in nations not subjected to the embargo. When the Iranian state oil company held an auction on December 16, 1973, bids for some $ 17 US dollars per barrel of oil were made. In late December 1973, OPEC held

17500-645: Was conflict between Arabs and Israelis in the Middle East , including several wars . The Suez Crisis , also known as the Second Arab–Israeli war, was sparked by Israel's southern port of Eilat being blocked by Egypt , which also nationalized the Suez Canal belonging to French and British investors. As a result of the war, the Suez Canal was closed for several months between 1956 and 1957 . The Six-Day War of 1967 included an Israeli invasion of

17640-479: Was Stalin who said there had to be a Jewish state...Israel is advancing Communist objectives...Among those of the Jewish faith there are those who embrace Zionism...Most of the immigration to Israel is from the Soviet Union...They want to establish a Communist base right in the Middle East...And now, all over the world, the Jews are putting themselves into positions of authority". On February 22, 1974, King Faisal chaired

17780-551: Was a worthy companion to Lê Đức Thọ in terms of stubbornness as the king accused the United States of being biased in favor of Israel, going on in a long rant about the balefulness of "Jewish Communists" in Russia and Israel, and despite all of Kissinger's efforts to charm him, refused to end the oil embargo. Faisal told Kissinger: "The United States used to stand up to aggression-you did that in World War Two and in 1956 during

17920-423: Was almost nothing private of him left". A sign of the changed values was that despite the total ban on alcohol in Saudi Arabia that drinking along with drug use become common with the younger members of the House of Saud. James Akins, the American ambassador in Riyadh reported; "the sky over Riyadh is black with vultures with new get-richer-quicker plans under their wings". In 1974, property prices in Riyadh doubled on

18060-556: Was becoming more and more unhappy with the United States, saying he wanted America to pressure Israel to return all the lands captured in the Six Day War of 1967. In a later interview, Yamani accused Kissinger of not taking his warning seriously, saying all he did was to ask him not to speak anymore of this threat. Angry at Kissinger, Yamani in an interview with the Washington Post on April 19, 1973, warned that King Faisal

18200-532: Was considering an oil embargo. At the time, the general feeling in Washington was the Saudis were bluffing and nothing would come of their threat to impose an oil embargo. The fact that Faisal's ineffectual half brother King Saud had imposed a cripplingly oil embargo on Britain and France during the Suez War of 1956 was not considered an important precedent. The CEOs of four of America's oil companies had after speaking to Faisal arrived in Washington in May 1973 with

18340-598: Was known as the Arab Cold War , but Sadat got along very well with King Faisal of Saudi Arabia , forming an alliance between the most populous Arab state and the wealthiest Arab state. Unlike the secularist Nasser, Sadat was a pious Muslim and he had a strong personal rapport with King Faisal, who was an equally pious Muslim. The man largely in charge of American foreign policy, the National Security Adviser, Henry Kissinger , later admitted that he

18480-559: Was like and was told: "Well, Dr. Henry, he will probably go on with you about Communism and the Jews". King Faisal's two great hatreds were Communism and Zionism as he believed that the Soviet Union and Israel were plotting together against Islam. When King Faisal was shown a translation into Arabic of The Protocols of the Learned Elders of Zion , he instantly believed in the authenticity of The Protocols and therefore talked to anyone who would listen about what he had learned, despite

18620-476: Was needed at the Riyassa Palace immediately. Yamani told the king: "The TV news goes out at nine. If you make a decision now, we can get it announced at once". The king replied "Write this down" and announced he was placing a total embargo on the United States. The embargo was accompanied by gradual monthly production cuts—by December, production had been cut to 25% of September levels. This contributed to

18760-462: Was not the best considered decision we made". The arms lift enraged King Faisal of Saudi Arabia and he retaliated on October 20, 1973, by placing a total embargo on oil shipments to the United States, to be joined by all of the other oil-producing Arab states except Iraq and Libya. Faisal was angry that Israel had only asked for $ 850 million worth of American weapons, and instead received an unsolicited $ 2.2 billion worth of weapons, which he perceived as

18900-544: Was organized after the oil companies slashed the posted price of oil, but the posted price of oil remained consistently higher than the market price of oil between 1961 and 1972. In 1963, the Seven Sisters controlled 86% of the oil produced by OPEC countries, but by 1970 the rise of "independent oil companies" had decreased their share to 77%. The entry of three new oil producers— Algeria , Libya and Nigeria —meant that by 1970, 81 oil companies were doing business in

19040-482: Was rationed, the lights were turned off in Times Square, the "gas guzzler" automobiles suddenly stopped selling, speed limits became common and restrictions were placed on weekend driving in a bid to conserve fuel. As the American automobile industry specialized in producing heavy "gas guzzler" vehicles, there was an immediate shift on the part of consumers to the lighter and more fuel efficient vehicles produced by

19180-586: Was so engrossed with the Paris peace talks to end the Vietnam war that he and others in Washington missed the significance of the Egyptian-Saudi alliance. At the same time that Sadat moved closer to Saudi Arabia, he also wanted a rapprochement with the United States and to move Egypt away from its alliance with the Soviet Union. In 1971, the US had information that the Arab states were willing to implement another embargo. In July 1972, Sadat expelled all 16,000 of

19320-604: Was the Suez Crisis in 1956 when the United Kingdom, France and Israel invaded Egypt. During the conflict the Syrians sabotaged both the Trans-Arabian Pipeline and the Iraq–Baniyas pipeline , which disrupted the supply of oil to Western Europe. The second instance was when war broke out between Egypt and Israel in 1967, but despite continued Egyptian and Syrian enmity against Israel, the embargo lasted only

19460-409: Was the troublesome issue of where to safety store the spent nuclear rods that emitted a toxic level of radioactivity for centuries afterward in an cost-effective manner. The issue of the spent nuclear rods was especially difficult because in a classic case of NIMBYism , communities proved very unwilling to accept a storage place for the inevitable by-product of nuclear power, the spent nuclear rods, with

19600-502: Was to control the economic weapon of potential oil embargo and prevent its use caused by popular emotion. Iraq initially declined to join, preferring to work under the umbrella of the Arab League , considering OAPEC too conservative. Equally the three founders considered Iraq too radical to be desirable as a member. However, by early 1972, the criterion for admission had changed to oil being a significant source of revenue (rather than

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