Oil Embargo Dependency on foreign oil – OPEC – Organization of Petroleum Exporting Countries OPEC did what to oil prices in the 1960s? Yom Kippur War – Syria and Egypt invade Israel – U.S. backs ?, OPEC backs ?

Stagflation Combination of high unemployment and high inflation Causes of high unemployment – Increased trade competition – More people looking for work Baby-boomer, women and disillusioned hippies Causes of high inflation – Deficits run and costs of Vietnam War and social programs Stagflation and Embargo combine to create recession that Nixon can’t stop

Embargo Impact How did the OPEC embargo effect U.S. foreign policy today? What countries was the U.S. primarily concerned with before the embargo? – Nixon oversight