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Hurricane Isaias becomes Category 2 as Gulf energy insurance risks rise
Brokers are flagging potential business interruption and supply chain losses as the storm shuts down part of Gulf oil output and threatens major refinery operations.
Insurance Business reports that Hurricane Isaias strengthened into a Category 2 storm on Thursday afternoon as it moved toward the northern Gulf Coast. The outlet said the storm is expected to peak near 110 mph early Friday before weakening slightly ahead of landfall late Friday or early Saturday.
According to Insurance Business, the hurricane has already shut down a large share of Gulf oil production and added pressure to an energy system facing near-record diesel prices. The outlet also noted National Hurricane Center guidance placing Isaias about 325 miles south of the mouth of the Mississippi River as of the 5 p.m. ET advisory.
The story said hurricane-force winds extend about 15 miles from the storm center, while tropical-storm-force winds reach as far as 125 miles, with strong, gusty winds expected to move well inland after landfall. Insurance Business added that a hurricane warning covers the area from Ocean Springs, Mississippi, to the Bay/Gulf county line in Florida, including the coastline around Pascagoula.
For brokers, Insurance Business said the storm highlights how hurricanes can create losses beyond damaged property, with attention turning to refinery disruption, business interruption losses, and wider supply-chain impacts. The outlet also pointed to Pascagoula as the site of one of the region’s largest refineries.