Austerity begins: The Arab-dominated Organization of the Petroleum Exporting Countries (OPEC) decides to reduce oil exports by 5 percent until Israel withdraws from the territories occupied in the Yom Kippur War. Failing that, Saudi Arabia and several other nations will reduce production even more drastically. The countries imposed a total oil embargo against the United States and the Netherlands in retaliation for their military support of Israel. The embargo triggered a major energy crisis in the US and Europe, leading to soaring prices, fuel shortages, and rationing. OPEC reduced production again in the 1970s, and by 1980 the price of crude oil was 10 times higher than in 1973.
