Question

Which statement explains why the 1973 OPEC Oil Embargo had a major impact on the United States?

Answer 1

Answer:

The correct answer is C. The 1973 OPEC Oil Embargo had a major impact on the United States because by 1973, the United States had become dependent on foreign energy sources.

Explanation:

The Oil Crisis of 1973 concerned a worldwide deliberately created shortage of petroleum. The crisis was caused by a number of political actions by the Arab oil-producing countries, directed against the West.  

The Arab countries increased the oil price by 70% and reduced oil production by 5% every month, so that the price per barrel rose explosively. A full oil boycott was also introduced against a number of countries that had directly supported Israel in the Yom Kippur war. The United States and a number of other Western European countries were the main targets of this boycott. Countries such as Japan and Canada were also affected. The oil crisis with its rising oil prices led to a supply shock, which had a major impact on worldwide economy, because so many economic sectors depended on oil. The crisis led to stagflation - a combination of stagnation and inflation. The boycott was ended in 1974 after negotiations at the Washington Energy Conference.

Answer 2

Answer: C

Explanation:

The United States was dependant upon the consumption of foreign oil specifically that from the Middle East.