Table of contentsSummaryIntroductionWhat is the 1973 oil crisis?The 1973 oil crisis and its consequencesOPEC and the oil crisisHistory of oil1978 oil crisisCauses of the second crisis Iranian Islamic Revolution of 1979What the Iranian Revolution of 1979 meant for the US and world oil markets? Some figures from the second oil crisisThe oil crisis of 1979 meant recession for us, depression for carsConclusionReferencesSummaryIn this study we will examine the second oil crisis of 1978. First, we will briefly discuss the first oil crisis, then we will examine the causes of the first oil crisis, from the first crisis to the second crisis. In this study, we will include many events related to the second oil shock. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayIntroductionIn this article, we will discuss many issues related to the second oil shock. First, soon after the first oil shock, then the history of oil in the 1970s, the oil shock of 1978, the causes of the second oil shock and the Iranian revolution of 1979. We will learn about the Iranian revolution of 1979 in the United States and around the world. the oil markets, some figures on the second oil shock and the impact of the oil crisis on cars. What was the 1973 oil crisis? The 1973 oil crisis was a politically motivated oil crisis before the full start of the Arab wars with Israel. This is an event that the Arabs use as an asset in the global economy against Western countries, resulting in a worldwide oil crisis. It is a crisis that arises because the Arabs want to use oil as leverage against the 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 observed in different sciences and disciplines and have led to the evaluation of new approaches and policies in private states. In the text of this study, the process that led to the oil crisis, which is quite detailed in the corresponding article, then attempts to explain the medium and long term consequences in terms of international relations and the economy. CrisisOn October 15, 1973, the Union of Arab Petroleum Exporting Countries (OPEC) (OPEC includes the Arab OPEC member countries Egypt and Syria) announced the oil embargo in response to support American to the Israeli army in 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 resources entering their countries by increasing global oil prices. The industries of developed countries being dependent on oil, they are the main customers of OPEC countries. The astonishing rise in oil prices in 1973 and the collapse of the stock market in 1973-1974 constituted a global economic crisis since the 1929 crisis and had mechanisms and long-term effects that could not be explained solely by the rise in prices. established, the oil resources of almost all oil-producing countries were exploited by Western and especially American oil companies, using Western technology. A second point is the following: the price of crude oil, which rose to 34 dollars per barreltoday, that is, at the beginning of 1982, is $1.80 per barrel for Middle East oil in January 1970 and $2.17 for higher grade oil. Libyan oil. However, OPEC did nothing until the Arab-Israeli War of 1973. However, since 1970, the trend of confiscation of oil companies began in almost all Middle Eastern countries. Iraq, for example, fully nationalized the Iraq Petroleum Company in 1972. Iran did almost the same thing in 1973, transforming the oil companies into a single manager, placing production entirely in the hands of the National Company Iranian (INOC). Other Arab countries and notably Persian Gulf countries have also increased their stakes in foreign companies. History of Oil Developments in Iran and Iraq in 1979 and 1980 led to a new period of rising prices for ham oil. June 1979 From November 1978 to June 1979, during the Islamic Revolution in Iran, daily oil production resulted in a loss of 2 to 2.5 million barrels. At one point, production almost stopped. On the other hand, throughout the Iran-Iraq War, Kuwait provided billions of dollars in aid to Iraq. But the Iraqi invasion of Kuwait in 1990 demonstrated that oil and money will never be enough to ensure the country's security and that military power cannot replace it. 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 numerous problems that were not based on a single factor. On the other hand, this revolution is one of the main reasons for the post-World War II high prices. But the impact of the revolution on prices would not last very long due to subsequent events. In fact, immediately after the revolution, Iranian production increased to 4 million barrels per day (Bayraktaroğlu, 2016). 1978 Oil CrisisThe second oil crisis of 1978-79, the second of two oil crises of the 1970s, led society to panic over the situation. potential lack of gasoline. Prices of crude oil and refined products have become very high. Oil production fell by as much as 7%, but a short-term supply disruption caused a price panic and a surge in the number of gas stations. The 1978 oil crisis saw global crude oil reserves drastically reduced following the fall of Shah Mohammad Reza Pahlavi, ruler of the Iranian state from early 1978 to early 1979. They almost doubled in 12 months to 39, 50 dollars per barrel. Oil CrisisBetween 1970 and 1974, the oil industry experienced revolutionary economic changes. Decisions on oil prices are traditionally made by international oil partnerships. This situation was echoed by OPEC members. Oil-exporting countries have increasingly nationalized their private stocks of oil production, thereby achieving most of the savings. OPEC members raised oil prices four times, cut production, and imposed a ban on shipments to the United States for political reasons (embargo). These measures have led to fundamental changes in countries' energy policies, international balances of payments and the role of multinational oil partnerships. The Sunday Age, which determines the price and production of cheap oil, is now closed. With the oil crises of 1973 to 1977, oil-producing countries caused developed countries to use oil and experience economic difficulties. During this period, for the first time, oilwas used as an effective political weapon against Western countries that supported Israel's expansionist policies, but this 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 efficiency of multinational corporations has been successful. Continuing the oil crises, the United States has been directly involved in regional politics and has established close relationships with oil-rich states such as Saudi Arabia, The Force, and the United Arab Emirates. The 400% price increase in 1974 forced the production systems of industrialized countries, notably the United States, to be structured around cheap oil. To prevent profits and wages from falling below their real value, rising oil prices began to pass through to costs. Rising costs have led to accelerating inflation. Oil payments, which had an inflexible demand structure, absorbed much purchasing power in importing countries, significantly reducing demand for other goods. The second oil crisis of 1978-1979 produced an effect different from that of the first, which corresponds to the crisis, the Keynesian theory (demand must be driven by the lack of means to increase public spending on the basis of the approach in principle) the lack of explanation in the context of evaluating theories that led to the crisis in a different way and provide solutions. Structuralists, monetarists, proponents of supply-side economics, and rational expectations theory emerged as the product of the inability of demand-side-based analyzes to explain the new formation. We consider Iran to be the main actor in the second oil shock. 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 policy. 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 goals of Iranian foreign policy. Iranian Islamic Revolution of 1979 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 the sharp rise in oil prices, developing countries have had to increase their investments in the energy sector. The price of crude oil rose from $2.5 to $11.6, shaking the balance of the global economy, leading to an increase in the foreign trade deficit in oil-importing countries. What did the 1979 Iranian Revolution mean for the United States and global oil markets? The Iranian revolution triggered the second global oil crisis in five years. Strikes began in Iran's oil fields in the fall of 1978, and crude oil production fell by 4.8 million barrels per day by January 1979, or about 7 percent of world production at the time. Other producers managed to offset a fraction of the volume, resulting in a net loss of supply of around 4 to 5 percent. However, oil prices have increased significantly and, in the middle