The International Energy Agency calls the recent United States and Israeli actions against Iran the biggest disruption to oil supplies in history. That headline is meant to wake people up. The last time the world felt shockwaves like this was in 1973, when an oil embargo triggered a global squeeze and long-lasting economic fallout.

Quick refresher: what happened in 1973?

On October 6, 1973, Egypt and Syria attacked Israel to try to regain land lost in 1967. The timing was chosen to catch Israel off guard during an important religious holiday. When the United States supported Israel, a group of Arab oil exporters retaliated.

Facts to remember:

  • Production hit: The 1973 measures cut around 4.5 million barrels per day, roughly 7 percent of global supply at that time.
  • Price shock: OAPEC raised oil prices by about 70 percent and applied targeted shipment bans, including against the United States.
  • Global role: The Middle East produced about 36 percent of the world’s oil then, so the hit was large and felt fast.

How the 1973 embargo affected prices and daily life

In the United States, crude moved from under $3 a barrel to over $12 within months. Gasoline at the pump went from about $0.38 to $0.55 per gallon. The federal government introduced emergency measures such as lower speed limits, fuel rationing and year-round daylight saving time.

Other countries were hit hard as well. Japan and much of Western Europe saw sharp economic slowdowns. The United Kingdom enacted a three-day workweek and restricted weekend driving.

What’s happening now in 2026?

The current disruption centers on Iran restricting traffic through the Strait of Hormuz, a vital chokepoint for Gulf oil exports. The practical effect is severe:

  • Volume affected: More than 20 million barrels per day of oil shipments are blocked in practice, about one-fifth of global petroleum consumption.
  • Price movement: Brent crude rose from roughly $66 per barrel before the strikes to above $100 in the early weeks, a jump of about 60 percent.
  • Retail pain: U.S. national pump prices climbed significantly, with some states reporting averages above $5 per gallon and peaks near $8. Other countries have seen even bigger percentage jumps.

Countries feeling the squeeze hardest

  • Cambodia saw prices rise almost 68 percent over a few weeks.
  • Vietnam recorded nearly a 50 percent increase.
  • Other notable rises include Nigeria, Laos and Canada.

What governments are doing this time

The International Energy Agency’s 32 members agreed to release a combined 400 million barrels from strategic reserves. That is the largest coordinated release in the IEA’s history and more than double the 2022 release tied to the Russia-Ukraine crisis.

  • Scale: The release equals about 20 days of flow through the Strait of Hormuz, and it will take months to deploy.
  • U.S. contribution: The United States plans to provide 172 million barrels over the year and has loaned tens of millions of barrels to companies from its reserve.
  • Global buffers: IEA members collectively hold more than 1.2 billion barrels in official reserves, plus roughly 600 million barrels held by industry under obligation.

These measures may blunt short-term volatility, but analysts caution they cannot replace a sustained flow of oil if the Strait of Hormuz remains effectively closed.

How today’s shock differs from 1973

There are key structural differences that matter:

  • Actors: The 1973 shock was a coordinated action by multiple oil-exporting states aimed at Western countries. The 2026 disruption is driven mainly by control over a transit point by a single state.
  • Diversification: Since 1973 the world has diversified supply. Oil has fallen from about 46.2 percent of global primary energy in 1973 to roughly 30.2 percent today. Still, that shift is uneven and concentrated in wealthier economies.
  • Vulnerable regions: Today the sharpest risks are to fast-growing developing Asian markets that rely heavily on shipments through the Strait of Hormuz. Many of these countries have only a few weeks of reserves on hand.

Economic risks and possible outcomes

Economists warn the current shock could produce stagflation, which is persistently high inflation combined with weak growth and rising unemployment. Major oil spikes in the past have been followed by recessions in many economies.

Lower-income countries face extra danger because they spend a greater share of income on food and imports of fertiliser. Higher fuel and fertiliser costs can quickly push up food prices and reduce supplies.

Lessons from the past and next steps

The 1973 embargo changed global energy policy. Governments pushed for domestic supply, nuclear power and energy efficiency. In the long run those policies helped some countries reduce dependence on Middle Eastern oil. The current crisis is testing those changes and exposing where resilience remains thin.

Short-term releases from reserves and conservation guidance can lower immediate pressure on markets. But if the transit restrictions continue, those fixes are temporary. The bigger questions are how quickly shipping can resume, whether alternate pipeline flows can scale up, and how governments will balance emergency relief with longer term shifts in supply and demand.

Bottom line: the two events share a common theme, which is that disruptions to oil supply ripple through the whole economy. The mechanics and global context differ, but the stakes remain high for energy security and for people who pay for petrol and food.