Which of the following events was associated with the massive hike in oil prices all over the world in the year 1973?

Arab-Israel War

The correct answer is Option 3 - Arab-Israel War

The period when the nuclear test was conducted was a difficult period in domestic politics. Following the Arab-Israel War of 1973, the entire world was affected by the Oil Shock due to the massive hike in the oil prices by the Arab nations. It led to economic turmoil in India resulting in high inflation. Many agitations were going on in the country around this time, including a nationwide railway strike.