Dubai Ports World (DP World), a global port operator, has announced a 60% drop in its first-half profits, partially attributed to attacks by the Iran-backed Houthi rebels, who are designated as a terrorist group by several countries. The attacks have significantly impacted shipping through the Red Sea.

DP World reported profits of $265 million for the first half of 2024, a stark decrease from $916 million in the same period last year, according to the Associated Press.

Sultan Ahmed bin Sulayem, DP World's chairman and CEO, acknowledged that disruptions in the Red Sea have impacted the company's revenue.

"2024 has been marked by a deteriorating geopolitical environment and global supply chain disruptions due to the Red Sea crisis," bin Sulayem said in a statement accompanying the results. "While near-term trading outlook remains uncertain due to prevailing macroeconomic and geopolitical headwinds, the resilient financial performance of the first half... positions us well to deliver a stable adjusted profit for the full year."

Bin Sulayem did not elaborate on the specific impacts of the Houthi attacks on DP World, a government-owned shipping company that delisted itself from the Nasdaq Dubai stock exchange in recent years.

Since November 2023, the Houthis have targeted shipping through the Red Sea corridor. These attacks have disrupted trillions of dollars worth of goods that flow annually through the region, sparking the fiercest naval combat the US has seen since World War II.

While the rebels claim their attacks target ships linked to Israel, the US, or the UK, most of the vessels attacked have no connection to the conflict or are entirely unrelated.

Shipping companies have begun rerouting around the Cape of Good Hope off South Africa to completely avoid the Red Sea. This redirection has impacted shipping through Dubai's Jebel Ali port, home to DP World and the world's largest man-made port.