Overview
Before 1973, Americans had an almost theological faith in abundance—that resources were essentially limitless and that economic growth had no natural ceiling. The embargo didn't just spike prices; it introduced scarcity as a permanent feature of modern life. Every energy debate since—over nuclear power, climate change, fracking, electric vehicles—has been conducted in the shadow of that October 1973 morning when Arab oil ministers turned a valve and the modern world discovered how fragile it was. For the first time, the US developed an energy policy, and the 55 mph limit was a direct response. Japan created a fleet of energy efficient cars and conquered the American market. OPEC discovered its power—and the world reorganized around it. The political map of the Middle East changed: it planted the seeds of the later 1970s Iranian Revolution crisis. It also accelerated US interest in a negotiated Arab-Israeli settlement and led directly to the Camp David Accords of 1978. Above all, it led to decades of US military entanglement in the Middle East. And that’s where we are today. For that reason, Embargo offers lessons that can be relearned today about how an oil crisis can rewire the world forever.
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