Nouriel Roubini explains why 1970s-style oil-supply disruptions no longer generate 1970s-style economic and market effects.
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Economics
Jul 14, 2026
Nouriel Roubini
Despite this year's US/Israeli-Iran war causing the largest-ever disruption to global oil supplies, the shocks of the 1970s had a greater impact. Because oil has been used as a weapon for so long, markets, policymakers, and strategists have adapted.
The Hormuz Strait induced Crisis of 2026 has many echoes, but key differences, from the 1973 oil shock.
The greatest oil shock in history seems to have passed with only fleeting effects as prices plunge. It doesn’t really add up.
Global inventories are drawing down at a record pace, leaving the market increasingly vulnerable to fresh disruptions.
The U.S. economy has held up fine despite the blockage of oil supplies following the attack on Iran four months ago, new research…
As the first attacks of the Iran war began and the Strait of Hormuz was shuttered, markets wasted little time pricing in the…
Shortages have been mitigated by a slowdown in Chinese oil purchases, robust inventories, emergency stock releases and surging US…
