ABSTRACT
Within two weeks of the outbreak of the Arab-Israeli war in October 1973, OAPEC members met in Kuwait. They decided to cut back oil production and exports by a minimum of 5 percent a month in relation to September 1973 levels, and to ban oil shipments to the United States until: that country modified its pro-Israeli stand; and the Israelis withdrew from all Arab territories occupied during the June 1967 war. The major oil companies were aware that the Libyan settlement would prompt a new wave of demands by the other oil-producing countries. Even before the new Libyan accords were signed, the Iranian Prime Minister demanded an increase in Iran’s income tax to 55 percent and an increase in posted crude prices. The Tehran agreement was signed on 14 February 1971. Four days after the Tehran agreement, talks began in Tripoli. On 2 April, six weeks after the Tehran agreement, Libya signed the five-year Tripoli agreement with 15 oil companies.
