It closed a major port for the blockade-runners, and diminished Southern control over the Mississippi.
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The capture of New Orleans was a good start. It was actually the capture of Vicksburg that was the key moment - not a city, but a major river-port.
The first Confederate city captured by the Union Army was New Orleans in 1862. New Orleans was the largest port city in the Confederacy. By the end of the war, the Union had also captured Mobile, Savannah, Charleston, and Wilmington in order to deprive the Confederacy of supplies.
It helped the Union gain control of the Mississippi River.
After the Union gained New Orleans, they could control the South of the Mississippi River
It helped the Union gain control of the Mississippi river.