The eye of the storm spread more devastation in the early hours of this morning as it crashed into Texas, Louisiana; the US storm season continues with violent Ike sending water surging over seawalls, across low-lying islands and flooding residential areas.

700 miles wide with winds reaching 110 mph, Hurricane Ike, struck Galveston and Orange counties.

Human Cost: The state governor, Gov. Rick Perry called the largest search-and-rescue operation in state history. Many residents ignored the mandatory evacuation orders and stayed in their homes. Allison Castle, a spokeswoman for Mr. Perry, said late Saturday that 940 people had been rescued so far, mostly in Galveston and Orange counties.

Impact on Townships: As the hurricane blew through eastern Texas, it took out skyscraper windows in downtown Houston and flooded whole towns along Galveston Bay. Numerous cars, beachfront homes, yachts and residential areas were wiped out.

Impact on the Price of Gas: Oil refineries have had to shut down twice in the past two weeks, for hurricanes Gustav and Ike and federal officials have reported that two offshore oil rigs were adrift about 100 miles from the Louisiana coast. Supply worries have sent retail gasoline prices soaring.

Overall: Officials began assessing the damage. It is thought that Ike could have been much worse. The storm's centre missed the concentration of oil and petrochemical refineries around Houston, and the surge of water over low-lying coastal islands and the Port of Houston was weaker than forecasters had predicted.