Sid Salter
- The 1970s taught us that energy stability isn’t guaranteed. Mississippi weathered those storms before, and with foresight and resilience, we’ll weather this one, too.
The cost of the first gallon of gas I bought as a kid in 1973? It was 28 cents a gallon. In Flowood last week I filled up for $3.60 a gallon.
Mississippians of a certain age have seen energy crises come and go. But few eras tested the patience, pocketbooks, and perseverance of everyday Americans like the oil shocks of the 1970s. Those of us who remember the long gas lines and rationing under Presidents Richard Nixon and Jimmy Carter can’t help but feel a chill of recognition as today’s conflict with Iran reverberates through global energy market.
The first great modern energy crisis arrived in 1973, when Arab oil‑producing states launched an embargo in retaliation for U.S. support of Israel in the Yom Kippur War. Policymakers feared shortages, and as crude oil quadrupled from roughly $3 to nearly $12 per barrel.
American consumers felt the pain. Nixon imposed federal rationing to maintain supply, but it only tightened the squeeze. Long lines at the pumps became a daily ritual as motorists sought the gas they needed to get to work or take their kids to school.
For Mississippi, the shortages hit especially hard as a rural state, with long drives between home, work, and school. In the 1970s, agriculture, timber, and manufacturing — all heavily dependent on diesel fuel — felt the sting of rising fuel prices. Even before the crunch, gas could be bought for under 30 cents a gallon in many places; by the end of the decade, the days of cheap fuel were over.
And with our state’s economy deeply tied to transportation costs, Mississippi families saw higher prices ripple through groceries, building supplies, and everything that had to be trucked.
Economists coined a term for what the nation experienced: stagflation — the toxic combination of inflation and stagnant economic growth. As oil prices rose, costs for electricity, food, and manufactured goods did, too.
According to the National Museum of American History, the 1973 embargo produced a 350% increase in crude oil prices, and those increases cascaded across the economy. By the end of the decade, after the 1979 Iranian Revolution upended global supply again, crude oil prices nearly doubled in a single year, reaching $39–$40 per barrel.
Meanwhile, the Federal Reserve, trying to tame inflation that had jumped from under 5% to nearly 7% by 1979, hiked interest rates dramatically. By late 1978, the federal funds rate had climbed from 6.9% to 10%, squeezing homebuyers, farmers, and small businesses. In Mississippi, where credit has always been the lifeblood of rural communities, the rise in borrowing costs compounded the hardship.
Fast‑forward to 2026, and the war involving Iran is introducing a new generation to the old anxieties of energy insecurity. This time, the flashpoint is the Strait of Hormuz, a narrow corridor through which some 25% of the world’s seaborne crude and 20% of liquefied natural gas (LNG) must pass. With Iran disrupting oil traffic, global oil markets have reacted with the same speed and severity as in the 1970s. Oil prices have surged more than 25%, LNG prices have doubled, and analysts warn that crude could reach $150–$200 per barrel if the conflict drags on.
In the U.S., gasoline prices recently jumped to an average of $3.41 per gallon, up 43 cents in a single week, according to AAA figures. Higher diesel costs squeeze our farmers, poultry producers, and timber operations — the same sectors that took the brunt of the 1970s crisis. Add in rising fertilizer costs resulting from disrupted sulfur, urea, and ammonia shipments, and Mississippi’s agricultural economy again finds itself in the crosshairs.
Globally, economists estimate that if oil averages $100 per barrel this year, worldwide economic growth will fall by 0.2 percentage points, while inflation will climb as much as 0.7 points. That’s not stagflation — but it’s close enough to make policymakers nervous.
What’s the lesson from the 1970s that Mississippians should remember in 2026? First, energy insecurity anywhere, unfortunately, leads to higher prices everywhere. Second, rural states with long supply chains and energy‑intensive industries feel the strain sooner and more sharply. Third, global economic shocks don’t stay global for long.
Most of all, the 1970s taught us that energy stability isn’t guaranteed. Today’s crisis differs in technology, geography, and politics — but the economic punch feels familiar. Mississippi weathered those storms before, and with foresight and resilience, we’ll weather this one, too.
