The gas prices are so high because of both high gas demand, and the war in Iraq. China and other rising countries are now buying more and more gas from the Middle East. This creates a sort of auction effect between China and the U.S. Also the war is fueling the gas epidemic because The Middle East who sells us most of our gas can charge a higher price because they know we need it. If the U.S. was to pull out of the war and go to an alternate fuel source, the Middle East would lose money.