Why did gas prices start to go up so high once Saddam was overthrown?

Oil prices are set by the market forces, not the individual oil producers. Saddam sold Iraq's oil at the going rates, not any cheaper nor more expensive than any of the other OPEC nations. The combination of unrest in the various oil-production regions, China and India's vastly increased demand, the weak dollar, have all combined to drive up speculation in the futures markets, creating the bubble we are currently in. Like all bubbles, it will adjust and return to a lower level. Unfortunately, the lower level it will return to will most likely never be below 60 to 70 dollars a barrel, so don't expect to ever pay less than $2.00 or $2.50 a gallon again.