50 per barrel over the next 12 months, and long lines once again appeared at gas stations, as they had in the 1973 oil crisis. Iraq War, global oil crisis pdf production in Iran nearly stopped, and Iraq’s oil production was severely cut as well. Economic recessions were triggered in the United States and other countries. Oil prices did not subside to pre-crisis levels until the mid-1980s.
After 1980, oil prices began a 20-year decline, except for a brief rebound during the Gulf War, eventually reaching a 60 percent fall-off during the 1990s. As with the 1973 crisis, global politics and power balance were impacted.
You can help by adding to it. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil sector, with production being greatly curtailed and exports suspended.
The rise in oil price benefited other OPEC members, which made record profits. When oil exports were later resumed under the new Iranian government, they were inconsistent and at a lower volume, pushing prices up. Saudi Arabia and other OPEC nations, under the presidency of Mana Al Otaiba, increased production to offset most of the decline, and in early 1979 the overall loss in worldwide production was about 4 percent.