"If the US and Israel stop killing Palestinians in Gaza, and allow entry of water, medicine, and food, then we can speak about (the release) of the Israeli ship," Mohammed Ali Al-Houthi, a member of the Houthi's Supreme Political Council, said on X.
He also said that the seizure of the ship "is consistent with the principle of reciprocity."
The senior Houthi leader stressed that his group only targets the Israeli ships and the Israeli-owned ships.
On Monday, the Houthi group warned that any intervention within the Yemeni territorial water would be met with a "suitable response," affirming that the group possesses suitable weaponry and rockets to deal with any development.
On Sunday, the Houthi group announced that it "captured an Israeli ship" in the Red Sea and had taken it to the Yemeni coast.
The Houthi said it seized the ship in support of the Palestinian people in Gaza, and to pressure Israel for ending the onslaught on Gaza.
Israel confirmed that Houthis hijacked an international cargo ship in the Red Sea but claimed that no Israelis were on board.
