The U.S. Marine Minerals Administration (MMA) announced on Friday that Hurricane Isaias has intensified to a Category 3 hurricane, leading to the suspension of approximately 72% of crude oil production in the U.S. Gulf of Mexico, equivalent to about 1.46 million barrels per day. As a result, spot crude oil prices in the Gulf region rose, with Mars crude trading at a premium of about $3 per barrel to WTI. Furthermore, the war in Iran has caused shipping costs to skyrocket, with the cost of transporting U.S. crude to Asia rising to approximately $79 million per vessel, further impacting export prospects.