Civil War Cotton Embargo Price Spike: How it applies to today's Oil embargo price spike.
War embargoes trigger a recurring cycle: supply shocks drive price spikes, speculation surges, trade routes shift, and liquidity tightens. The Civil War cotton crisis mirrors the 1970s oil shocks and today’s energy markets—featuring demand destruction, falling real incomes, and cost-push inflation. These booms end in crashes, as capital misallocation and banking stress unwind the speculative excess.