The 1973 oil crisis: the United States returns to the "Dark Age"

Liu Haoran

In recent days, there are no signs that the Middle East conflict will end soon. The ongoing blockade of the Strait of Hormuz is causing global energy shortages and even warning of an economic downturn. This situation feels like a "repetition of history"—half a century ago, the Fourth Middle East War broke out, and in response to Western support for Israel, OPEC, mainly composed of Middle Eastern countries, imposed an oil embargo on Western countries. Oil prices soared worldwide, leading to what was called the first oil crisis. For the United States, which was accustomed to cheap imported oil, the costs were extraordinarily heavy. The U.S. economy was severely impacted, with domestic inflation rising to double digits, and Americans' lives changed dramatically. Some American media even claimed that the U.S. had returned to a "dark age."

Food Price Index Rises Far Above Previous Years

According to the American "History Channel," in October 1973, the Fourth Middle East War broke out between Israel and Arab countries, with Israel receiving strong support from the U.S. At that time, the U.S. generously supplied $2.2 billion worth of weapons and supplies, which angered Arab nations.

In response, in October 1973, OPEC decided to impose an oil embargo on Western countries supporting Israel, marking the start of an international energy crisis. Within just a few months, international oil prices rose from $3 to $12 per barrel. Americans, used to abundant energy supplies and continuous consumption growth, suddenly faced fuel shortages and rising oil prices. BBC's famous anchor Humphrey said on a program: "The American way of life will be overturned."

According to PBS, after OPEC's embargo on the U.S., the country's annual oil import costs skyrocketed from $3.9 billion to $24 billion. Domestic inflation rose to double digits, and unemployment reached its highest level since the 1930s due to economic stagnation. New housing starts plummeted by 38%. Pan Am Airlines suffered heavy losses due to high fuel costs and had to seek federal aid. Over a year and a half, the number of people living below the poverty line in the U.S. increased by 5.6%. In a briefing in July 1974, then-Treasury Secretary William Simon told President Nixon: "Financial markets are close to panic, some large companies are unable to borrow."

This severe energy crisis affected all aspects of American society. From May 1973 to June 1974, the price of regular gasoline rose from 38.5 cents to 55.1 cents per gallon, a 43% increase. Due to energy shortages, gas stations across the country lined up with long queues, and frustrated customers often argued with station attendants. Warning signs reading "Beware of Oil Thieves" could be seen along roadsides.

The rising oil prices also triggered chain reactions, leading to serious food inflation. In 1973 and 1974, the Food Consumer Price Index increased by 14.5% and 14.3%, respectively, far exceeding previous years. In a 1974 article, Time magazine wrote: "Housewives are carefully budgeting, no longer shopping for meat as freely as before."

Truck Drivers Protest in 10 States

To cope with the crisis, various energy-saving measures were introduced across U.S. states. Due to fuel shortages, many gas stations closed on weekends; some used a "three-color flag" system to display inventory—green for ample supply, yellow for limited, and red for sold out. Some states implemented "odd-even" license plate systems to stagger refueling. Others banned holiday string lights and commercial lighting altogether. Strict rationing caused panic, and rumors spread that U.S. energy reserves had been exhausted.

The federal government also took measures, urging factories, businesses, and households to reduce heating and lower indoor temperatures. Due to low response, President Nixon even promoted: "My doctor told me that maintaining indoor temperatures between 18 and 20 degrees Celsius is healthiest, much better than 23 to 26 degrees... Maybe that will make you feel better."

To maximize daylight and reduce heating and electricity use, the U.S. began implementing year-round daylight saving time in January 1974, meaning everyone had to set clocks forward by one hour—students and workers had to wake up earlier. According to The Washington Post, on the first day of the new schedule, most Americans went out to work or school in darkness. Commuters used flashlights and grumbled as they headed to bus and subway stations.

Mainstream media ridiculed this move. The New York Times sarcastically called it "the dark age," and The Washington Post reported that Americans could no longer distinguish day from night. The Seattle Times published a front-page photo of students going to school in the dark, titled "Looks like night school." Insufficient lighting also threatened commuters' safety. Hartford Courant reported that on the first day, four Connecticut students were hit by cars. Within less than a month, eight minors in Florida had died in traffic accidents. The Washington Post in February 1974 noted that many mothers made reflective jackets for their children, worried about their safety walking to school in the dark.

By the end of 1973, Nixon's administration began pushing legislation to limit vehicle speeds to 55 mph (88.51 km/h). For truck drivers, whose livelihood depended on timely deliveries, "time is money." Under strict rationing, they needed multiple refills, which already cost them time. If a speed limit law was enacted, many truck drivers feared losing their jobs. The New York Times reported that in mid-December 1973, truck drivers protested in 10 states, with thousands participating. In the tri-state area of New York, New Jersey, and Connecticut, hundreds of trucks blocked roads. As tensions escalated, some incidents even involved gunfire.

"One of the greatest challenges facing nations besides war"

In fact, the Middle Eastern countries lifted the oil embargo against the U.S. in March 1974, but the crisis's impact persisted throughout the 1970s. One of the lingering issues was "stagflation"—a combination of stagnant economic growth and high inflation. As BBC noted, "8% inflation and 7% unemployment severely impacted the U.S. economy."

Some analysts believe the energy crisis resulted from a series of strategic misjudgments. BBC stated that since the 1950s, "the prosperity of the Western world depended on a stable supply of cheap oil." However, Washington policymakers were overly confident, believing that oil-exporting countries would not manipulate energy supplies and that they could not afford to lose the U.S. market. But in reality, the U.S. clearly "miscalculated."

The consequences of the energy crisis prompted reflection in Western countries. Many began seeking alternative energy sources and focusing on improving fuel efficiency. The U.S. proposed the "energy independence" initiative and increased investment in nuclear power. In 1977, the U.S. Department of Energy was officially established, supporting the development of energy-saving technologies, such as research into "low-radiation energy-efficient windows," which claimed to save 40% of indoor energy use.

Following Nixon, Presidents Ford and Carter also promoted energy conservation. In a speech in April 1977, Carter called energy issues "the greatest challenge facing nations besides war." In 1979, Carter installed 32 solar panels on the White House West Wing.