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Dubai-based ports operator DP World is preparing for higher throughput at its Red Sea terminals as the Iran conflict approaches its second week, CEO Yuvraj Narayan said on Thursday.

With the Strait of Hormuz effectively closed and tanker attacks escalating, shipping movements into Gulf ports have fallen.

The disruption began after US and Israeli strikes on Iran, rattling energy and freight markets and cutting access through what is widely seen as the world’s most critical oil corridor.

Since most major Gulf ports rely on the narrow Strait of Hormuz, the shutdown is weighing on regional trade flows.

Narayan said Jebel Ali, DP World’s main hub in Dubai, has not suffered any infrastructure damage and is operating normally, but inbound vessel arrivals are down. Some cargo is still moving through terminals on the eastern side of the strait, he added.

Ports in the UAE that sit outside Hormuz have limited headroom to absorb the shortfall. Khorfakkan can handle about 5 million 20-foot equivalent units (TEUs) and Fujairah under 1 million TEUs, which Narayan indicated would not be enough to offset lost volume from Jebel Ali or Abu Dhabi’s Khalifa Port.

Jebel Ali alone processed 15.6 million TEUs last year, out of DP World’s 56.1 million TEUs globally.

DP World is rolling out rerouting options and other operational measures to keep supply chains moving. Narayan said the company’s Red Sea assets, such as Jeddah in Saudi Arabia and Sokhna in Egypt, are likely to see increased traffic, though he did not quantify the additional volumes or specify cargo types.

He cautioned that logistical and security risks remain elevated.

Earlier this week, DP World announced record financial results for 2025, with revenue up 22% to $24.4bn and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 18% to $6.4bn, delivering a 26.3% margin, as MEED reported.

DP World said that this performance was driven by strong momentum across its ports and terminals and logistics business.

The group’s gross throughput rose 5.8% to 93.4 million TEUs.

Profit for the year increased 32.2% to $1.96bn, and operating cash flow grew 14% to $6.3bn.

Return on capital employed increased to 9.9% in 2025, up from 8.9% in 2024, reflecting stronger earnings despite ongoing geopolitical and trade uncertainty.