Were the oil crises of the 1970s linked to deflation or inflation?

The oil crises of the 1970s were predominantly linked to inflation. During this period, significant oil supply disruptions led to skyrocketing prices for oil, which in turn had a cascading effect on various sectors of the economy. As the cost of oil increased, so did transportation and production costs for goods and services, contributing to widespread price increases across the economy. This environment of rising prices is characteristic of inflation.

In response to the oil price shocks, many economies faced volatile inflation rates. Governments and central banks had to address these challenges through monetary policy adjustments, but the immediate effect of the oil crises was a substantial surge in inflation due to increased energy costs. While there were some deflationary pressures in specific sectors at times, the overall economic sentiment was marked by inflationary dynamics linked to rising oil prices.