{"id":42909,"date":"2026-03-30T12:54:20","date_gmt":"2026-03-30T12:54:20","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/42909\/"},"modified":"2026-03-30T12:54:20","modified_gmt":"2026-03-30T12:54:20","slug":"explainer-how-the-hormuz-attacks-stoke-oil-shock-fears-and-memories-of-1970s-stagflation","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/42909\/","title":{"rendered":"Explainer | How the Hormuz attacks stoke oil-shock fears and memories of 1970s stagflation"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Oil prices have surged amid the US-Israel conflict with Iran, with attacks having disrupted shipping through the Strait of Hormuz \u2013 a critical chokepoint that roughly one-fifth of the world\u2019s daily oil consumption moves through.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">With memories of 1970s stagflation still lingering, many are asking whether this is the start of another major oil crisis. Below is a concise look at prior shocks and what history suggests today.<\/p>\n<p>What happened during the 1970s oil shocks<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The first oil crisis in 1973-74 erupted during the Yom Kippur war, when Arab oil producers imposed an embargo on the United States and its allies, cutting global supply by about 4 million to 5 million barrels per day \u2013 about 10 per cent of world output at the time. Oil prices roughly quadrupled, triggering fuel shortages and emergency measures such as odd-even rationing in the US.<\/p>\n<p>The second oil crisis, from 1979 to 1980, was sparked by the <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/news\/world\/middle-east\/article\/3343207\/irans-revolution-anniversary-marred-protests-nuclear-tensions?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">Islamic revolution<\/a> and then the Iran-Iraq war, which together slashed Iranian output and disrupted regional flows. Supplies contracted by a comparable order of magnitude, and prices more than doubled again.Economic and market consequences, and the resolution<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Both shocks contributed to severe stagflation \u2013 high inflation combined with stagnant growth and rising unemployment. US headline inflation topped 12 per cent in 1974 and peaked near 15 per cent in 1980, according to a note by the Shenzhen-based Target Fund.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Traditional portfolios struggled as both stocks and bonds fell simultaneously, with the S&amp;P 500 plunging more than 40 per cent during the 1973-74 bear market. Gold, however, outperformed as an inflation hedge.<\/p>\n","protected":false},"excerpt":{"rendered":"Oil prices have surged amid the US-Israel conflict with Iran, with attacks having disrupted shipping through the Strait&hellip;\n","protected":false},"author":2,"featured_media":42910,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[18141,7620,382,8310,102,18142,6210,1691,389,49,261,18145,18146,101,18144,18143],"class_list":{"0":"post-42909","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-strait-of-hormuz","8":"tag-1970s-stagflation","9":"tag-federal-reserve","10":"tag-france","11":"tag-gold","12":"tag-hormuz","13":"tag-huatai-securities","14":"tag-international-energy-agency","15":"tag-iran-iraq-war","16":"tag-japan","17":"tag-middle-east","18":"tag-oil-prices","19":"tag-paul-volcker","20":"tag-sp","21":"tag-strait-of-hormuz","22":"tag-taiju-fund","23":"tag-yom-kippur-war"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116318231936709522","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/42909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=42909"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/42909\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/42910"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=42909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=42909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=42909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}