Oil and Stagflation
I. The Yom Kippur War
also known as the 1973 Arab-Israeli War and the Fourth Arab-Israeli War, was fought from October 6 to October 26, 1973 by a coalition of Arab states led by Egypt and Syria against Israel. The war began with a surprise joint attack by Egypt and Syria on Yom Kippur, the Jewish day of atonement. Egypt and Syria crossed the cease-fire lines in the Sinai and Golan Heights, respectively, which had been captured by Israel in 1967 during the Six-Day War.
The Egyptians and Syrians advanced during the first 24–48 hours, after which momentum began to swing in Israel's favor. By the second week of the war, the Syrians had been pushed out of the Golan Heights. In the Sinai to the south, the Israelis struck at the seam between two invading Egyptian armies, crossed the Suez Canal (where the old ceasefire line had been), and cut off the Egyptian Third Army just as a United Nations cease-fire came into effect.
The war had far-reaching implications for many nations. The Arab World, which had been humiliated by the lopsided defeat of the Egyptian-Syrian-Jordanian alliance during the Six-Day War, felt psychologically vindicated by its string of victories early in the conflict. This vindication paved the way for the peace process that followed, as well as liberalizations such as Egypt's infitah policy. The Camp David Accords, which came soon after, led to normalized relations between Egypt and Israel—the first time any Arab country had recognized the Israeli state. Egypt, which had already been drifting away from the Soviet Union, then left the Soviet sphere of influence entirely.
a) Arab victory and debacle, Israeli debacle and victory
b) Kissinger and “shuttle diplomacy”
II. First Oil Shock
a) energy dependence and economic warfare
b) social and economic “revolution” in the Middle East
III. End of the Thirty Glorious Years