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Try this, it might work but obviously I cannot test it on my system.
Update SOOSH01T O
Set SOWFSTSTID = case when (Select 1 from SOOSH00V03 I Where
O.SOOSH01TID = I.SOOSH01TID and SHPSTSCDE = 'Closed') = 1 then
(Select SOWFSTSTID from SOWFSTST Where WRKFLWCDE = 'DELIVERED')
when (Select 1 from SOOSH00V03 I Where
O.SOOSH01TID = I.SOOSH01TID and SHPSTSCDE <> 'Closed') = 1 then
(Select SOWFSTSTID from SOWFSTST Where WRKFLWCDE = 'WAREHOUSEREADY')
else SOWFSTSTID end
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