How Countries Responded to the Oil Crisis in the 1970s

Recent escalation of the Israel-Iran conflict. In terms of warfare intensity and scope of impact, it has surpassed all previous Middle Eastern geopolitical changes since 1980; regarding the Strait of Hormuz blockade and its effects on global energy and shipping, it even exceeds the two oil crises of the 1970s. In the short term, the “shock reaction” of oil prices may not have fully subsided, but more importantly, the medium to long term, Middle Eastern energy security is under threat. It can be said that the market will need to pay a considerable “new risk premium” for future energy prices for some time. Fortunately, compared to the 1970s, the global industrial structure has changed, and energy dependence has decreased. However, in the face of major investment demands driven by global geopolitical shifts and industrial structural裂变, the decline in traditional energy security has undoubtedly made resource commodities more scarce. This round of military conflict has only lasted 2-3 weeks, and many medium- to long-term effects have yet to manifest. This article reviews the policy responses of various countries after the 1970s oil crises and the long-term changes in economic structures, serving as a starting point for studying the long-term impacts of this shock.

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