Oil Supply Shock Echoes 1970s Crisis

Governments stockpile oil, but supply disruptions are global with no end in sight.

Mar. 13, 2026 at 3:56pm

Got story updates? Submit your updates here. ›

The current oil supply shock, triggered by attacks on energy infrastructure after the U.S. and Israel struck Iran, is being called the worst disruption to global oil supplies in history. While oil and gasoline prices are soaring, there are no signs yet of the chaotic shortages and rationing seen during the 1973 oil crisis, when the Middle East imposed an embargo. However, experts say the current shock is far more severe, with a greater percentage of global supply affected.

Why it matters

The 1973 oil crisis led to emergency government policies like rationing and driving restrictions, sparking panic buying that worsened shortages. While governments have stockpiled more oil this time, the global nature of the current supply disruption means there may be fewer options to mitigate the crisis.

The details

In 1973, the Middle East oil embargo only affected about 7% of global oil consumption and a handful of countries. This time, the attacks on energy infrastructure have disrupted a much larger share of global supply, with no clear timeline for when the situation will be resolved.

  • In October 1973, oil-producing countries in the Middle East imposed an oil embargo on the U.S. and other countries that had supported Israel during the Yom Kippur war.
  • This month, after the U.S. and Israel attacked Iran, the Iranians began counterattacks on energy shipping and infrastructure.

The players

Richard M. Nixon

The U.S. president who took emergency measures to limit oil consumption during the 1973 crisis, including rationing and driving restrictions.

Bob McNally

President of Rapidan Energy Group, a research firm, who says the current supply shock is far more severe than the 1973 crisis.

Got photos? Submit your photos here. ›

What they’re saying

“Policies like rationing set off panic buying, creating shortages instead of easing the problem.”

— Bob McNally, President, Rapidan Energy Group

“In a November 1973 speech, he called for Americans to take steps to 'include reductions in home heating, reductions in driving speeds, elimination of unnecessary lighting.'”

— Richard M. Nixon (The New York Times)

The takeaway

The current oil supply shock, triggered by attacks on energy infrastructure, is being called the worst disruption in history. While governments have stockpiled more oil this time, the global nature of the crisis means there may be fewer options to mitigate the impact on prices and availability compared to the 1970s.