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1973 Oil crisis

The consequences of the increased price of oil in 1973 is known as oil crisis. In 1973, the Organisation of Arab Petroleum Exporting Countries (OAPEC) reduced the oil production as a response to the occupation of areas in Jordan and Egypt by Israel in the 1973 Arab-Israeli War which led to high increases of the price of oil. The OAPEC countries intended to pressure the United States and other oil dependent countries to change their position towards Israel. Oil was the most important energy source in the Federal Republic of Germany (FRG) with 75 percent of the oil in West Germany coming from OAPEC-countries. The oil price increase substantially influenced the German economy and led to a decrease in industrial production, rise of the unemployment rate as well as stagnation of the gross national product. The motor industry was particularly affected by the crisis. In order to save oil, the government declared a driving ban on several Sundays. The economic situation and the increased unemployment rate served to justify the 1973 ban on labour recruitment.