1967 Oil Embargo

1967 Oil Embargo

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The 1967 Oil Embargo began on June 6, 1967, one day after the beginning of the Six-Day War
Six-Day War
The Six-Day War , also known as the June War, 1967 Arab-Israeli War, or Third Arab-Israeli War, was fought between June 5 and 10, 1967, by Israel and the neighboring states of Egypt , Jordan, and Syria...

, with a joint Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...

 decision to deter any countries from supporting Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 militarily. Several Middle Eastern countries eventually limited their oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....

 shipments, some embargoing only the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, while others placed a total ban on oil exports. The Oil Embargo did not significantly decrease the amount of oil available in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 or any affected Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

an countries due mainly to a lack of solidarity and uniformity in embargoing specific countries. The embargo was effectively ended on September 1 with the issuance of the Khartoum Resolution
Khartoum Resolution
The Khartoum Resolution of September 1, 1967 was issued at the conclusion of an Arab League summit in the wake of the Six-Day War. The resolution, which formed a basis of the policies of these governments toward Israel until the 1973 Yom Kippur War, called for: a continued state of belligerency...

.

Oil Ministers' Conference


During the June 9-18 Oil Ministers' Conference in Baghdad
Baghdad
Baghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...

 several Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...

 countries issued a communiqué
Communique
A communiqué is a brief report or statement released by a public agency.Communiqué may also refer to:* Communiqué , a rock band* Communiqué , 1979* Communiqué , 1987...

 that two resolutions were unanimously passed:
  1. "Arab oil shall be denied to and shall not be allowed to reach directly or indirectly countries committing aggression or participating in aggression on sovereignty of any Arab state or its territories or its territorial waters, particularly the Gulf of Aqaba
    Gulf of Aqaba
    The Gulf of Aqaba is a large gulf located at the northern tip of the Red Sea. In pre twentieth-century and modern sources it is often named the Gulf of Eilat, as Eilat is its predominant Israeli city ....

    "
  2. "The involvement of any country, directly or indirectly in armed aggression against Arab states will make assets of its companies and nationals inside the territories of Arab countries subject to the laws of war
    Laws of war
    The law of war is a body of law concerning acceptable justifications to engage in war and the limits to acceptable wartime conduct...

    . This includes the assets of oil companies."


Invitees included the United Arab Republic
United Arab Republic
The United Arab Republic , often abbreviated as the U.A.R., was a sovereign union between Egypt and Syria. The union began in 1958 and existed until 1961, when Syria seceded from the union. Egypt continued to be known officially as the "United Arab Republic" until 1971. The President was Gamal...

, Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....

, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....

, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

, Algeria
Algeria
Algeria , officially the People's Democratic Republic of Algeria , also formally referred to as the Democratic and Popular Republic of Algeria, is a country in the Maghreb region of Northwest Africa with Algiers as its capital.In terms of land area, it is the largest country in Africa and the Arab...

, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...

, Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...

, and Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

. Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

 sent copies of the Council resolution to the Embassies of Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

 and Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

, and sought the support of Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...

.

Oil Embargo


The Baghdad Resolution is important because Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...

 broadcast claims of US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 aircraft support on June 6. Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

 was the first country to limit their oil shipments, embargoing the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 on June 6. Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Algeria
Algeria
Algeria , officially the People's Democratic Republic of Algeria , also formally referred to as the Democratic and Popular Republic of Algeria, is a country in the Maghreb region of Northwest Africa with Algiers as its capital.In terms of land area, it is the largest country in Africa and the Arab...

, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...

 eventually embargoed the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....

 stopped all oil exports, rather than just embargoing specific countries in order to avoid declaring specific nations as aggressors.
The United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 advocated emergency measures in OECD meetings and supported the establishment of an International Industry Advisory Board. The Advisory Board was critical in efficiently apportioning limited tanker resources and managing the distribution of the limited oil resources. This was an effective measure to negate the oil embargo as there was no consensus on what countries to embargo, and more importantly, oil shipped to a European country could then be shipped to any of the embargoed countries. Some Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...

 countries encouraged the oil companies to circumvent the embargo, as the Amir of Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

 even proposed to the US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 ambassador
Ambassador
An ambassador is the highest ranking diplomat who represents a nation and is usually accredited to a foreign sovereign or government, or to an international organization....

 that companies simply tamper with shipping manifests
Bill of lading
A bill of lading is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified...

 to allow shipment of oil to prohibited countries.
Egypt sought to bend not only international political policy but also the policies of more moderate governments. and sought to export the socialist revolution
Export of revolution
Export of revolution is actions by a victorious revolutionary government of one country to promote similar revolutions in other countries, as a manifestation of revolutionary internationalism of certain kind, e.g., the Marxist proletarian internationalism....

 to neighboring moderate (i.e. conservative) countries. The embargo resulted in public pressure on Middle Eastern leaders to support Arab solidarity. Nasser effectively limited moderate countries' political options lest they risk a revolution.

Khartoum Resolution


The Khartoum Resolution
Khartoum Resolution
The Khartoum Resolution of September 1, 1967 was issued at the conclusion of an Arab League summit in the wake of the Six-Day War. The resolution, which formed a basis of the policies of these governments toward Israel until the 1973 Yom Kippur War, called for: a continued state of belligerency...

 issued on September 1 allowed the moderate oil producing nations (Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

, and Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....

) to resume oil exports and regain this critical source of revenue without risking disquiet or even overthrow from their more radical citizens. In exchange, they agreed to give annual aid to "victims of Zionist aggression" namely Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...

 and Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...

 ($266 million and $112 million respectively). A full discussion as well as the text is available in the Khartoum Resolution
Khartoum Resolution
The Khartoum Resolution of September 1, 1967 was issued at the conclusion of an Arab League summit in the wake of the Six-Day War. The resolution, which formed a basis of the policies of these governments toward Israel until the 1973 Yom Kippur War, called for: a continued state of belligerency...

 article.

The oil embargo was the main reason for the formation of OAPEC which would provide a forum for the discussion of using oil politically.

See also


  • Energy crisis
    Energy crisis
    An energy crisis is any great bottleneck in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles...

  • Supply shock
    Supply shock
    A supply shock is an event that suddenly changes the price of a commodity or service. It may be caused by a sudden increase or decrease in the supply of a particular good. This sudden change affects the equilibrium price....

  • 1973 oil crisis
    1973 oil crisis
    The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...

  • 1970s Energy Crisis
    1970s energy crisis
    The 1970s energy crisis was a period in which the major industrial countries of the world, particularly the United States, faced substantial shortages, both perceived and real, of petroleum...

  • 1979 energy crisis
    1979 energy crisis
    The 1979 oil crisis in the United States occurred in the wake of the Iranian Revolution. 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...

  • 1980s oil glut
    1980s oil glut
    The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. The world price of oil, which had peaked in 1980 at over US$35 per barrel , fell in 1986 from $27 to below $10...

  • 1990 spike in the price of oil
  • 2000s energy crisis
  • Hubbert peak theory
    Hubbert peak theory
    The Hubbert peak theory posits that for any given geographical area, from an individual oil-producing region to the planet as a whole, the rate of petroleum production tends to follow a bell-shaped curve...

  • Boycott
    Boycott
    A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons...

  • Embargo
    Embargo
    An embargo is the partial or complete prohibition of commerce and trade with a particular country, in order to isolate it. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is...