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Canceling order which cannot be shipped due to postal regulations

I'm currently in Europe and sold my US cell phone, which is locked on a US carrier and has no SIM card, so it's of no use to anyone outside the US.

 

As I tried to ship it, I was told by the post office that I cannot send any items with lithium batteries overseas. No one mentioned that when I first went to ask how much shipping to the US would be. 

 

I refunded the buyer, but would like to cancel the transaction so I can get my final value fee back, however, don't see an appropriate option for it. The only options are to cancel because I'm out of stock, because the buyer requested it, or because something was wrong with the buyer's shipping address. None of those really fit, so how can I get my final value fee back?

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