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By JONATHAN KATZ
The Associated Press

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PORT-AU-PRINCE, Haiti - Hurricane Gustav barrelled into Haiti on Tuesday, toppling trees, dumping rain and sending global fuel prices soaring on fears the storm could become "extremely dangerous" when it reaches the Gulf of Mexico.

The hurricane roared ashore with top sustained winds near 145 km/h at about 1 p.m. EDT, 16 kilometres west of the city of Jacmel and 65 kilometres from the capital of Port-au-Prince.

Heavy rains pelted the area, bending palm trees and kicking up surf along waterfronts of dilapidated wooden buildings.

"If the rain continues, we'll be flooded," UN consultant Jean Gardy said from the southeastern town of Marigot.

Oil prices shot up US$5 a barrel Tuesday after the National Hurricane Center predicted Gustav could enter the gulf as a major hurricane this weekend. Prices of futures in natural gas, heating oil and gasoline also shot up.

U.S. gasoline prices could rise by 10 cents a gallon ahead of Labor Day weekend if Gustav continues on this path, according to James Cordier, president of trading firms Liberty Trading Group and OptionSellers.com.