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1973 Oil Crisis Impact On India

Introduction
The 1973 oil crisis began in October 1973 when members of the Organization
of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo.
The crisis had several effects on global politics and global economy. This was
also known as First Oil Shock.

The political environment in the early 70s


The political conditions in70s were characterized by several developments.
The major even shaping the environment was cold war between the East and
the West. The increasing dominance of communist regimes in parts of the
world resulted intensions between the two power blocks, which again led the
US to become strongly engaged in several regions in the world, especially in
Asia. During that time US was still at war with Vietnam which ended in 1973.
Middle East was also unstable around that time. Aside from social and
unstable political conditions in many countries, the Arab-Israeli conflict had
deep political impact on the development of the whole region.
Israel was formed following a UN Resolution after the Second World War on
the territory of the British colony Palestine, the Palestinians and neighboring
countries responded with political and violent resistance. Many of the
neighboring countries wanted the destruction of Israel. Israel faced several
violent conflicts with neighboring countries since its origin. The fourth war in
this context was when Egypt and Syria attacked Israel on the most important
day of Jewish celebrations, Yom Kippur.