1979 Oil Crisis

CrisisEconomic1979
RegionGlobal
Year1979
TypeCrisis
CategoryEconomic

About 1979 Oil Crisis

The second oil shock, triggered by the Iranian Revolution. Oil production in Iran collapsed, and prices doubled to 39 per barrel. The crisis worsened inflation and contributed to the recession of 1980 to 1982. Gasoline lines returned to America. The Federal Reserve, under Paul Volcker, raised interest rates to 20 percent to kill inflation, causing the worst recession since the 1930s. The oil crisis shifted wealth and power to oil producing nations. The subsequent 1980s oil glut collapsed prices, devastating oil dependent economies like Texas, Nigeria, and the Soviet Union.

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