Answer:
The event that sparked the decade-long economic crisis was a sudden increase in oil prices in 1973.
Explanation:
The 1973 oil crisis lasted from 1973 to 1974, caused by the OPEC oil embargo in response to the US decision to support the Israeli army in the Yom Kippur war.
In response to US aid to Israel, OPEC's Arab members, led by Saudi Arabia, decided on October 17 to reduce oil production by 5%. On October 19, President Nixon approved an aid package that provided Israel with $ 2.2 billion in arms and equipment. Saudi Arabia then announced an oil embargo against the United States, which was later joined by other oil-exporting countries. The oil embargo was extended to European countries, which caused the 1973 energy crisis.
Over the long term, the embargo changed the attitude and policies of Western countries regarding oil exploration, energy conservation and economic policies as weapons against inflation.
The world financial system was already under pressure since the Bretton Woods agreement was abolished and a series of recessions and high inflation continued until the early 1980s.
