Volatility Is Inherent To Petroleum

Oil Shockwave De Jure: From 1970s Embargo to Hormuz Havoc

Prices at the pump are painful again. Gas car drivers are wincing, fleets are recalculating routes, and boardrooms are dusting off contingency plans. Sound familiar? It should, because we have danced this disruptive dance before. The 1970s oil shocks made gasoline as precious as gold and kick-started the first serious push toward fuel efficiency and renewable energy. Fast-forward half a century, and the Iran war, complete with naval mines in the Strait of Hormuz, has slammed the brakes on roughly one-fifth of the world’s seaborne oil and liquefied natural gas. Prices are spiking, volatility is par for the course. At CarsWithCords.net we cannot help but ask: will this modern mess deliver the same electric wake-up call?

Back to the Bad Old Days: The 1970s Petroleum Panic That Changed Everything

The Yom Kippur War of 1973 resulted in an OPEC embargo. Oil prices quadrupled from about three dollars to twelve dollars a barrel almost overnight. Lines at gas stations snaked for blocks, odd-even rationing was invoked, and Americans suddenly cared deeply about miles per gallon. Then came 1979, the Iranian Revolution, and prices doubled again. The result was not just sticker shock, it was legislation with teeth. Congress passed the Corporate Average Fuel Economy standards in 1975, forcing automakers to nearly double passenger-car efficiency by the mid-1980s. Japanese imports with their thrifty four-cylinder engines flooded the US market, Detroit scrambled to downsize, and the phrase “gas guzzler” entered the national lexicon.

These energy shocks also lit a fire under renewables. The Public Utility Regulatory Policies Act of 1978 opened the grid to non-utility generators, solar research budgets ballooned, 32 solar water-heating panels (solar thermal panels) were placed on the roof of the West Wing, and wind farms began sprouting in California. Efficiency became patriotic, alternatives became viable, and the seeds of today’s electrification movement were planted in the panic of those pump-line days.

Current Chaos in the Chokepoint: Mines, Missiles, and a Maritime Mess

Jump to today in early 2026. Joint U.S.-Israeli strikes on Iran escalated into open conflict, and Tehran responded with the queen's gambit energy chess move: naval mines in the Strait of Hormuz. Tanker traffic has plummeted, insurers have bailed, and shipping companies are anchoring offshore rather than risking fire or worse. The narrow waterway normally carries about 20% of global oil and a hefty share of LNG. With traffic down sharply, that flow has been throttled. Crude has surged past the $100-per-barrel mark, briefly flirting with $120 before settling into volatile territory. Gasoline prices are climbing fast, European natural-gas futures have spiked, and analysts warn of ripple effects on plastics, fertilizers, and everything in between.

This is chokepoint chaos. Unlike the coordinated OPEC embargoes of old, this disruption is live, kinetic, and laced with uncertainty. Mines can be cleared, but the psychological premium on every barrel lingers. Volatility is the name of the game, and markets hate nothing more than not knowing when the next tanker will safely transit.

Parallels and Progress: Same Shock, Sharper Tools

Both crises trace back to the same volatile region, both choke global supply, and both punish consumers at the pump and any goods that are transported (e.g., nearly everything). Yet the differences matter. In the 1970s the world had almost no electric vehicles, no serious battery supply chain, and climate change was barely on the radar. Today we have viable EVs rolling off assembly lines, falling battery costs, and (some) governments committed to decarbonization targets. High gasoline prices that once merely boosted hybrid sales now make the total-cost-of-ownership math for full battery-electric vehicles look downright delicious.

Natural-gas volatility adds a fresh twist. Power plants that rely on LNG face higher costs, which could accelerate the shift to wind and solar. The 1970s gave us CAFE standards and PURPA. What might 2026 deliver? The current US administration is unlikely to do anything to promote EVs or renewables, but individuals can choose to plug in rather than fill up.

The Silver Lining: A Jolt for Efficiency, Electrification, and Energy Independence

Every cloud has a corded lining. When fuel prices swing wildly, consumers vote with their wallets. Expect EV inquiry rates to climb as payback periods shrink. Fleet operators already eyeing electrification will accelerate those plans. The 1970s shocks proved that sustained high prices can reshape entire industries. This time the industry is ready, the technology is mature, and the environmental imperative is crystal clear.

So while the mines in the Strait of Hormuz create genuine hardship and the price spikes sting, this crisis also spotlights the fragility of our fossil-fuel reliance. The same forces that once pushed Detroit to slim down sedans and California to pioneer wind power are at work again, only now the finish line is a world where most miles are driven on electrons instead of octane.

History does not repeat exactly, it rhymes. The 1970s gave us the first efficiency revolution. The Hormuz havoc of 2026 could turbocharge the electrification one. The next chapter in energy independence is charging up right now.

Era / Year	Trigger / Event	Gasoline Price Impact (Nominal US Avg Peak or Surge)	Key Policy / Tech / Market Response
1973-1974	Arab Oil Embargo (OPEC, Yom Kippur War)	Doubled from ~$0.36 to $0.50-$0.65; long lines, rationing	CAFE standards introduced, early renewables push, efficiency focus
1979-1981	Iranian Revolution + Iran-Iraq War	From ~$0.63 (1979) to peak ~$1.31 (1981)	Further conservation, PURPA, renewables investment surge
1990-1991	Gulf War (Iraq invades Kuwait)	From ~$1.00 to over $1.50 briefly	Saudi production increase, prices moderated post-intervention
2005	Hurricanes Katrina & Rita (Gulf refinery damage)	Jump to ~$3.00-$3.20 regionally/nationally	Short-term shortages, post-hurricane recovery focus
2007-2008	Global demand surge + speculation	Peak ~$4.11 (July 2008)	Financial crisis crash followed, hybrid/EV interest rise
2011-2014	Arab Spring, Libya conflict, Iran sanctions	Averages ~$3.50-$3.70, peaks ~$3.64 (2012)	Shale boom begins easing long-term pressures
2022	Russia-Ukraine Invasion + sanctions	Over $5 in regions, national highs ~$4.17-$5.00+	Accelerated EV adoption, renewables incentives
2026 (Current)	Iran war, Strait of Hormuz mines/blockage	Surged past $100 crude, gasoline climbing rapidly (volatile highs)	Accelerated EV and renewables adoption