CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is energy crisis?

Energy crisis

This term may refer to the 1979 oil crisis in America, when crude oil prices soared following political upheaval in Iran. This led to panic about availability, and long queues at petrol stations as Americans scrambled to buy fuel for their cars.

Where have you heard about energy crisis?

You may have heard the crisis mentioned in the context of supply and demand. It can be seen as an example of how reduced supply of a product can lead to increased demand (and rising prices).

What you need to know about energy crisis.

The 1979 Iranian Revolution, where the US-backed ruler Mohammad Reza Shah Pahlavi was replaced by an Islamist regime, was the initial spark of the energy crisis. It led to reduced oil production in Iran, meaning worldwide prices rose. As with a similar fuel crisis in 1973, motorists began panic-buying fuel as they anticipated a shortage. However, it had a more positive effect on the oil-producing regions of the US, and encouraged the Government to reduce dependence on fossil fuels.

Find out more about energy crisis.

The 1979 energy crisis was an example of the economic laws of supply and demand.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading