Truman Initiative Operation Free in the Market Oracle:
THE WIDENING GULF
Oil and national security were at one time treated like they meant the same thing, using the extra loop of logic that cheap oil = economic security. Today, Goldman Sachs, and other major financial market players are pulling out all the stops, using all the tricks to try and stop oil prices from falling. High oil prices are now a critical prop to the world's failing financial, banking, monetary and trading systems.
The 1973 oil shock, starting in October 1973 lasted until March 1974 with oil prices multiplied by about 4.75 (+375%) but more important for its political settlement, it changed the way western politicians saw the role of oil, and the US - which was rapidly shifted to centre stage, by other major importer countries - and set as the main cause of the Arab oil embargo of October 1973. Some European nations and Japan sought to disassociate themselves from the USA's "over supportive" stance on Israel. This pushed the Nixon administration to start parallel negotiations with Arab oil producers to set a rise in prices acceptable to all parties, and start talks with Egypt, Syria, and Israel to arrange an Israeli pull back from the Sinai and the Golan Heights.
The views expressed in this opinion piece are those of the author and do not necessarily reflect the views of the Truman National Security Project or Educational Institute.
