US to issue waiver to expand sales of E15 gasoline to ease pump prices

March 25 (Reuters) - President Donald Trump's administration on Wednesday announced it will issue a waiver expanding sales of gasoline blends with 15 percent ethanol, or E15, to combat higher pump prices since the start of the war on Iran.

The move by the Environmental Protection Agency will allow retailers to continue to sell E15, a blend that is typically not permitted during summer months over concerns about smog.

Analysts say the change could shave several cents per gallon off retail prices. The U.S. average price for a gallon of regular gasoline is running just over $3.98, up more than a dollar from a month ago, according to data from AAA.

Global oil prices LCOc1 have surged since the start of the U.S and Israeli war against Iran as the conflict blocks shipments through the Strait of Hormuz, the conduit for a fifth of world crude and liquefied natural gas supply.

The White House is trying to contain the economic and political fallout from the war. It has already announced a release of crude oil from U.S. emergency stockpiles and the easing of sanctions on both Russia and Iran to make more of their oil available to the market.