Gustav's winds fell to 70mph (110km/h), although experts warned the storm could regain strength later this week.

Oil prices on trading markets rose amid forecasts Gustav could by Sunday become a highly dangerous category three to five hurricane in the Gulf of Mexico.

The Dominican Republic discontinued its hurricane warning but a hurricane watch remains in place for Jamaica and Cuba.

In Cuba, ex-President Fidel Castro issued an essay mentioning the hurricane and pledging that the government in Havana "guarantees no-one will be forgotten".

At 2300 local time (0300 GMT) the storm's centre was about 85 miles (130km) west of Port-au-Prince, Haiti.

"Gustav is moving back over water and is expected to regain hurricane strength on Wednesday once it clears the south-western peninsula of Haiti," the US National Hurricane Center said.

The storm lingered for hours over Haiti's poor, deforested southern peninsula on Tuesday, felling trees and raising water levels on banana, bean and vegetable fields.

Protests

Hundreds of people in coastal Les Cayes ignored official warnings to seek shelter, instead hurling rocks in protest at the high cost of living. UN peacekeepers and Haitian police fired tear gas to disperse the crowds.

Flood victim Marlene Anglade told Reuters news agency: "The water took away our bed, our houseware equipment, and we never received any help at all."

Correspondents say Haiti remains volatile because of soaring food prices, which in April led to deadly protests and the toppling of the nation's prime minister.

Haiti was hit a week ago by a tropical storm that left more than two dozen dead and there are fears Gustav could bring further flash floods and mud slides.

It is the seventh tropical storm of the Atlantic hurricane season.

BBC