Shipping companies expressed caution about using the shorter route between Asia and Europe that many ships have avoided for more than a year.

Yemen’s Houthi rebels have signaled they will limit their attacks in the Red Sea corridor to only Israeli-affiliated ships as a ceasefire in the Gaza Strip takes hold.

Despite recently touting a Suez route, Mediterranean Shipping Company (MSC) said it will stick to Cape of Good Hope until further notice.

Houthi rebels have backed the Gaza ceasefire agreement reached between Israel and Hamas, with the Yemeni group’s spokesperson saying they will halt their military operations against Israel as well as commercial ships in the Red Sea if the truce comes into force on Sunday.

Yemen’s Iran-backed Houthi movement has released the crew of a cargo ship more than a year after its fighters hijacked the vessel in the Red Sea, as part of its campaign of attacks in support of Hamas in its war against Israel.

Ships not linked to Israel could begin returning to the Red Sea in as little as two weeks, DP World's deputy chief executive said, adding that could see freight prices "come crashing down".