The First Oil Crisis and Advancing Overseas

The first oil crisis erupted in October 1973, spurred by the Fourth Middle East War (Yom Kippur War). Rising oil prices resulted in skyrocketing inflation or so-called vicious price spiral that directly impacted consumers and industry.
Due to government intervention in prices, the oil companies were unable to cover the rise in crude oil prices by increasing product prices, putting pressure on the pricing structure that was focused on income from gasoline alone. The effects of this would be felt in the future as well.
Also, as leadership on petroleum shifted from the major oil companies to OPEC, Idemitsu quickly decided to advance its operations into the Middle East, in light of the need to secure crude-oil supplies. In April 1973, it opened the Middle East Office in Beirut, which would serve as a base for opening a succession of offices in Tehran, Iran, Kuwait, and Riyadh, Saudi Arabia, as it strengthened its relations with oil-producing countries through direct trading in crude oil.
At the same time, Idemitsu also began full-fledged operations for purchasing and trading of crude oil and petroleum products on international petroleum markets immediately after the oil crisis, based in New York, London, and Singapore.