What policy measure was implemented as part of the Arab oil embargo?

• A. Subsidies to oil importers
• B. Cutbacks in oil production followed by 5% cutbacks each month
• C. Immediate halt to exports
• D. Doubling production

Answer: (B)

The action hinges on using oil supply as leverage. During the embargo, oil-producing nations reduced the amount they produced and exported, not by subsidizing buyers or stopping shipments completely, but through gradual cutbacks intended to tighten supply and push prices higher. The policy implemented was to scale back production, with about a 5% reduction each month. This approach applied political pressure by constraining available oil, rather than expanding production or halting exports all at once.