Why would the US allow Iran to continue to sell oil while Iran is destroying other ships.

To keep oil prices from rising too high, with whole countries running dry. While GOP will portray it as 100% democrats fault, west coast runs out of jet fuel in a week or so.

Something Iran can do to force GCC to demand an end to war within 10 days is to destroy all desalination infrastructure

No one wants Iran to be able to charge for access to the Strait and this would put pressure on the to find a more agreeable end to the conflict.

It is a legal response to an illegal war. Reparations paid to Iran (normally by US) that US adoring colonies can pay instead would satisfy Iran's revenue generation/compensation rationale.