IndexSummaryIntroductionWhat is the 1973 oil crisis?1973 oil crisis and its consequencesOPEC and the oil crisisHistory of oil1978 oil crisisCauses of the second Iranian oil crisis1979 Iranian Islamic RevolutionWhat what did the 1979 Iranian Revolution mean for Iran US and global oil markets? Some facts about the Second Oil CrisisThe 1979 oil crisis meant recession for us, depression for automobilesConclusionReferencesAbstractIn this study, we will consider the second oil crisis of 1978. First, we will briefly address the first oil crisis, then we will examine the causes of the first oil crisis since first crisis to second crisis. In this study we will include many events related to the second oil crisis. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay IntroductionIn this article we will cover many issues related to the second oil crisis. First, immediately after the first oil crisis, then the history of oil in the 1970s, the 1978 oil crisis, the causes of the second oil crisis and the Iranian revolution of 1979. We will learn about the Iranian revolution of 1979 in the United States and in the world. oil markets, some numbers from the second oil crisis and the impact of the oil crisis on cars. What was the 1973 oil crisis? The 1973 oil crisis is an oil crisis based on political reasons reasons before the Arab wars with Israel fully began. It is an event that the Arabs use as a trump card in the world economy against Western countries, causing an oil crisis throughout the world. It is a crisis that arises because the Arabs want to use oil as leverage against advancing and developing Western countries. The 1973 oil crisis and its aftermath The 1973 oil crisis was one of the key events that determined the future direction of international relations. However, the effects of this crisis have also been seen in different sciences and disciplines and have led to the evaluation of new approaches and policies in private states. The text of this study describes the process that led to the oil crisis, which is rather detailed in the relevant article, and then tries to explain its medium and long-term consequences in terms of international relations and the economy. OPEC and the Oil Crisis On October 15, 1973, the Union of Arab Oil-Exporting Countries OAPEC (OAPEC includes the Arab member countries of OPEC, Egypt and Syria) announced the oil embargo in response to the support of the United States to the Israeli army on Yom It is called the Yom Kippur War. OAPEC says it will no longer export oil to countries that sided with the United States and Israel in the war. However, OPEC member countries decide to increase the resources coming into their countries by increasing world oil prices. Since the industries of developed countries depend on oil, they are the main customers of OPEC countries. The surprising increase in oil prices in 1973 and the stock market crash in 1973-1974 constituted a global economic crisis starting from the 1929 crisis and presented long-term mechanisms and effects that could not be explained by rising prices alone . When OPEC was founded Once established, oil resources in almost all oil-producing countries were managed by Western and especially American oil companies, according to Western technology. A second point is this: the price of crude oil, which rose to 34 dollars a barrel today, that is, at the beginning of1982, is $1.80 a barrel for Middle Eastern oil in January 1970 and $2.17 for higher grade oil. Libyan oil. However, OPEC did nothing until the 1973 Arab-Israeli war. However, starting in 1970, the trend of confiscating oil companies began in almost all Middle Eastern countries. Iraq, for example, completely nationalized the Iraq Petroleum Company in 1972. Iran did much the same in 1973, turning the oil companies into a single manager, putting production entirely in the hands of the Iranian National Corporation (INOC). Other Arab countries and, in particular, the Persian Gulf countries also increased their stake in foreign companies Oil History Developments in Iran and Iraq in 1979 and 1980 led to another period of rising gasoline prices. June 1979 From November 1978 to June 1979, during the Islamic Revolution in Iran, daily oil production caused a loss of 2-2.5 million barrels. At one point production almost stopped. On the other hand, during the Iran-Iraq War, Kuwait provided billions of dollars in aid to Iraq. But the fact that oil and money will never be enough to ensure the country's security, and that military power cannot replace them, was demonstrated by the Iraqi invasion of Kuwait in 1990. Iran's Islamic revolution, like many revolutions, was a political, social and economic phenomenon that occurred at the end of a process in which a large anti-regime group was formed with the accumulation of many problems that were not based on a single factor. On the other hand, this revolution is one of the main reasons for the high prices in the post-World War II period. But the impact of the revolution on prices would not last long due to events that would occur later. In fact, immediately after the revolution, Iranian production increased to 4 million barrels per day (Bayraktaroğlu, 2016). 1978 Oil Crisis The second oil crisis of 1978-79, the second of two oil crises in the 1970s, led society to panic over the 1978-79 oil crisis. potential lack of petrol. It has reached very high prices for crude oil and refined products. Oil production fell as much as 7%, but a short-term supply disruption caused panic prices and a surge in gas stations. The 1978 oil crisis saw global supplies of crude oil significantly reduced after the fall of Shah Mohammad Reza Pahlavi, ruler of the Iranian state from early 1978 to early 1979. It nearly doubled in 12 months to $39.50 per barrel. Oil Crisis Between 1970 and 1974, the oil industry underwent revolutionary economic changes. Oil pricing decisions have traditionally been initiated by international oil partnerships. This situation was noted by OPEC members. Oil-exporting countries have increasingly nationalized their private stocks of oil production, reaping most of the savings. OPEC members increased the price of oil four times, cut production and imposed a ban on shipments to the United States for political reasons (embargo). These moves have brought about fundamental changes in countries' energy policies, international balances of payments, and the role of multinational oil partnerships. The Sunday Era that determines cheap oil, oil prices and production was now over. With the oil crisis of 1973-1977, oil-producing countries forced developed countries to use oil to encounter economic difficulties. During this period, for the first time, oilit was used as an effective political weapon against Western countries that supported Israel's expansionist policies, but was short-lived due to the failure of the oil-producing states to form a political union. which holds more than half of the world's oil exports, has experienced political instability and the effectiveness of multinational corporations has been successful. In the continuation of the oil crisis, the United States has become directly involved in regional politics and has established close relations with oil-rich states such as Saudi Arabia, the Force, and the United Arab Emirates. The 400% increase in prices in 1974 forced the production systems of industrialized countries, especially the United States, to be structured according to the principle of cheap oil. To prevent profits and wages from falling below their real value, increases in oil prices began to be reflected in costs. Rising costs have caused inflation to accelerate. Payments for oil, which had a rigid demand structure, absorbed much of the purchasing power in importing countries, significantly reducing demand for other goods. The second oil crisis of 1978-1979 produces a different effect than the first, corresponding to the resulting crisis, the Keynesian theory (demand must be animated by the lack of means to increase public spending according to the principles approach), the absence of any explanation in the framework of the evaluation of the theories that led to the crisis differently and bring solutions. Structuralists, monetarists, proponents of supply-side economics, and rational expectations theory emerged as a product of the inability of demand-oriented analyzes to explain the new formation. We consider Iran the protagonist of the second oil crisis. Oil revenues were Iran's most important source of income. Policies to modernize Iranian society and industrialize the economy have increased Iran's dependence on natural resources. Oil economics and politics have also influenced Iran's foreign and national security policies. The growing role of oil in the economy has led to the strengthening (economization) of the economic dimension of foreign policy. During the Shah's reign, encouraging foreign direct investment, establishing foreign trade zones, and establishing deep economic relations with the Western world became the main objectives of Iranian foreign policy. 1979 Iranian Islamic Revolution In Iran, there was an oil supply crisis with the fall of the Shah and the establishment of a Sharia state in his place. To overcome the obstacle posed by high oil price increases, developing countries have had to increase investments in the energy sector. The price of crude oil rose from $2.50 to $11.60, shaking the balance of the world economy and leading to an increase in foreign trade deficits in oil-importing countries. What did the Iranian Revolution of 1979 mean for the United States and global oil markets? The Iranian revolution triggered the world's second oil crisis in five years. Strikes began in Iranian oil fields in the fall of 1978, and crude oil production fell by 4.8 million barrels per day in January 1979, or about 7 percent of world production at the time. Other producers managed to recover a fraction of the volume, resulting in a net supply loss of around 4-5%. However, there was a notable increase in oil prices, and by mid-1979 the price of barrels rose from $13 per barrel to $34 per barrel.