What Is an Embargo?

By Jeremy Bowman – Updated Sep 5, 2025 at 12:18 PM

Key Points

Embargoes are official trade bans that can target all or specific goods to exert political influence.
These measures can isolate both the targeted and the enacting country, impacting global economic relations.
Historically, embargoes like the 1973 oil crisis have prompted negotiations, impacting resource prices long-term.

Trade is crucial to the global economy. But it's not just an economic driver but also a political tool. Free trade can be used to strengthen relations between two or more countries. However, the opposite could also happen in trade relations since trade can be restricted for coercive reasons or as punishment. This is known as an embargo.

Loading paragraph...

United States American trade embargo represented by U.S. flag on a wooden door locked with a padlock. — Image source: Getty Images.

Loading image...

Loading paragraph...

Tariff and Trade Investigation Tracker

A one-stop shop to track all the tariff and trade action from the Trump administration.

The U.S. Trade Balance With Every Country

The latest data on the U.S. trade in goods surplus and deficits by country.

Investing in Natural Gas Stocks

This cleaner-burning fossil fuel is considered a bridge to lower-carbon options.

Investing in Liquefied Natural Gas Stocks

Natural gas must be liquefied to travel long distances. These companies are getting it done.

Loading hub_pages...

Loading paragraph...

About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

The Motley Fool has a disclosure policy.