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(CNN Money) By James O'Toole - The new year has greeted Americans with the highest January gas prices ever, and some analysts say prices could get close to $5 a gallon in some areas during the warm-weather driving season.
The average price for a gallon of regular unleaded gasoline in the United States on Monday was $3.39, according to motorist group AAA. That's nearly 30 cents higher than a year ago.
The national average reached a peak of $4.114 in July 2008.
Experts say there are a variety of factors placing upward pressure on prices at the pump. For one thing, the U.S. economy appears to be in a modest recovery, heralding a likely uptick in gasoline demand.
For another, the possibility of conflict with Iran over its threat to close the Strait of Hormuz has driven a rally in crude oil prices over the past few weeks, increasing input costs for refineries.
The Strait of Hormuz is a critical shipping lane, with 17 million barrels of oil per day passing through in 2011, according to the U.S. Energy Information Agency. That's about one-sixth of global oil production and nearly 20% of all the oil traded worldwide.
"The potential surrounding the Iranian situation is much worse than Libya," said Patrick DeHaan, senior petroleum analyst at gas price reporting website GasBuddy.com, recalling the oil spikes that accompanied Libya's civil war last year. "The stakes are much higher."
Gas prices on the rise again
Looking ahead, continued geopolitical risk as well as speculative interest in oil and emerging market demand could push prices higher.
Read full story at CNN Money...
