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From the Arab oil embargo of the 1970s to the ongoing war in the Middle East, here are eight events that shook crude oil prices.
Suez Crisis
In 1956, the UK, France and Israel invaded Egypt, as the latter nationalised the Suez Canal Company. The nine-day-long conflict disrupted 10% of the world’s oil supply.
Arab oil embargo
In 1973, Arab oil producers imposed an embargo on the US and some of its allies. It led oil prices to rally nearly 300% from $3/bbl to a peak of $12/bbl.
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Iran-Iraq war
Oil prices surged from $14/bbl in 1978 to $35/bbl in 1980 at the end of the Iranian revolution. After an initial surge in prices as the Iran-Iraq war (1980-88) began, oil prices fell below $11/bb in 1986.
Gulf war
In 1990, Iraq invaded Kuwait, leading to the first Gulf War and raising Brent crude prices from $15/bbl to $41/bbl.
Emerging market demand
Crude oil prices soared from $30/bbl in 2003 to a record of $147.27/bbl (WTI) in July 2008, driven by demand from emerging markets, particularly Brazil, China and other Asian economies.
2008 crash
The record-setting rally ended abruptly with the global financial crisis. As economic activity collapsed, oil demand dropped sharply, causing prices to fall more than 70% within five months to around $30–$35/bbl by December 2008.
COVID crash
On April 20, 2020, the West Texas Index (WTI) Crude oil traded in the negative at -$37/bbl, following a collapse in global demand due to COVID-19 and the Russia-Saudi Arabia price war.
Russia-Ukraine war
In March 2022, Brent crude prices advanced to $139.13/bbl, the highest since 2008, as the markets responded to the Russian invasion of Ukraine.
Iran war
The attack on Iran by the US and Israel has spiralled into an major oil crisis. The closure of the Strait of Hormuz and attacks on oil refineries across the Gulf have spiked oil prices from $73/bbl to nearly $120/bbl.
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