Well, the Netherlands wasn't the only other state targeted besides the US. Canada, Japan, the Netherlands, the United Kingdom, the United States, Portugal, Rhodesia and South Africa were also targeted.

The Netherlands was targeted for a few reasons.

First, they were seen as supportive of Israel. Following the outbreak of the war, they condemned Egypt and Syria for attacking Israel and violating the ceasefire. They also called for Israel to evacuate from occupied territories (not "the" occupied territories), which was how Resolution 242 in the Security Council worded it. Arab states argued that the word "the" was unnecessary, but Israel, the US, and the UK (who primarily wrote the resolution) said that it meant that Israel was not obligated to withdraw from all occupied territories, and that borders should be adjusted for the sake of peace. The Netherlands' statement was seen as pro-Israel on this front.

Second, the Netherlands and Israel had a military relationship. They had supplied Israel with arms in the 1956 and 1967 wars, and when the 1973 war broke out, Israel asked for assistance once more, saying they were on the edge of the abyss. They transferred spare and surplus parts, particularly for Centurion tanks that made up a significant part of the Israeli tank force and which the Netherlands was transitioning away from. It's unclear how large the effort was in terms of saving Israel, but the weapons supplied were likely a part of the Arab decision to embargo the Netherlands.

The third reason was the Netherlands' resistance to European policy. By this I mean that the European system had already formed the European Political Cooperation, which was basically an agreement to coordinate foreign policy among the member states. The Netherlands vetoed a statement that would've been seen as neutralist in the conflict, saying that it was more important to be allied with the US than pretending to be neutral on the conflict. This was compounded by the US declaring the war a major test for NATO and NATO unity against Soviet aims.

The Netherlands' diplomatic and military support for Israel meant that the Arab states, in a fit of anger, targeted them with the oil embargo. This was a big problem for the Netherlands, which imported significant amounts of energy from the Arab world and OPEC.