What Next for Gas Prices? March 1, 2012, 3:01 pm As I write in Thursday's Times, gasoline prices keep going higher and higher. And how high they are going to go is just about anyone's guess. Those who track the supply and demand fundamentals say the price of oil should be about $80 a barrel and gasoline prices should be as much as 50 cents below where they are. But throw tensions with Iran into the mix, and you get scary prices. Investors - called speculators by many - see the fear and they throw money into oil futures contracts. That raises all of the benchmark oil prices well over $100 a barrel. The bet is the United States and Europe will continue to squeeze Iran with sanctions, which means there could be reduced supplies on world markets. If Iran retaliates by blockading the Strait of Hormuz, the vital Persian Gulf sea lane, watch out for hostilities and even higher prices. The daily rise in gasoline prices is already worrying many economists and consumers. According to the AAA daily gasoline price gauge, today's average price for regular unleaded is $3.74 a gallon, up nearly a penny from yesterday. That's a 13-cent rise over the last week and a 30 cent rise over the last month. The price is 35 cents higher than it was on March 1 of last year. The situation leaves President Obama with a dilemma on his hands. If he gets tougher on Iran, gas prices could go up even further, especially since prices normally go up in the spring and summer driving season anyway. It will be hard for him to balance national security, the economy and his own political interests. Given all of those uncertainties, consumers will be nervously eyeing the pumps.