New Orleans Braces...

ISSAC BECOMES CAT 1 HURRICANE 
NEAR GULF COAST MIAMI 

(AP) -- Isaac became a hurricane Tuesday that could flood the coasts of four states with storm surge and heavy rains on its way to New Orleans, where residents hunkered down behind levees fortified after Katrina struck seven years ago this week.

Shelters were open for those who chose to stay or missed the chance to get away before the outer bands of the large storm blow ashore ahead of a forecast landfall in southeast Louisiana on Tuesday night or early Wednesday. However, with the exception of some low-lying areas, officials had not ordered mass evacuations.

The U.S. National Hurricane Center in Miami said Isaac became a Category 1 hurricane Tuesday with winds of 75 mph. It could get stronger by the time it's expected to reach the swampy coast of southeast Louisiana.

Tropical Storm Issac

Should Rival Hurricane Katrina

On August 24^th, we warned on Forbes that Tropical Storm Isaac could pose a threat to energy markets and even rival Hurricane Katrina in its destructive power (Could Tropical Storm Isaac Turn Into Another Katrina?). While the computer models are still showing a substantial spread in solutions, it appears more likely that Isaac will make landfall somewhere near the Louisiana, Mississippi Gulf Coast. This track will provide the storm more time to intensify over the very warm water of the Gulf of Mexico.