Why did the price of oil go up so dramatically during the Arab-Israeli War and the Iranian Revolution?

why did the price of oil go up so dramatically during the arab-israeli war and the iranian revolution?

and then why did it drop back down afterwards?

3 Responses to “Why did the price of oil go up so dramatically during the Arab-Israeli War and the Iranian Revolution?”

  1. michael w Says:

    During the Arab Israeli war the Suez canal became blocked so all oil tankers had to travel around the cape. Hence high oil prices The government at the time said that it was only to be a temporary measure but in fact petrol never came down even when the canal was reopened.

  2. Mark S Says:

    because that area is were a large part of the world’s oil comes from. If there were any interruptions of production over there that means there would be less oil in the world to sell so the price goes up.

  3. Dr Suess OB/GYN Says:

    The first embargo was in 1967 as a result of the US helping Israel.

    The second was in 1973.
    OPEC punished those that helped Israel in the Yom Kippur war with an oil embargo. I guess you are talking about the Yom Kipur war. Israel would have lost had the US not air lifted arms to Israel,but Israel was ready to use nukes which would have been bad.

    During the Iranian revolution it was unsure about the future of oil supply from Iran which resulted in a price increase. It never really went down,it has just went through adjustments over the years.