12:29 PM EDT, 03/27/2026 (MT Newswires) -- US equity indexes fell as crude oil futures extended gains amid receding hopes of a diplomatic solution to the Iran war.

The Nasdaq Composite dropped 1.1% to 21,181.6, with the S&P 500 down 0.7% to 6,430.2, and the Dow Jones Industrial Average 0.7% lower at 45,643.5.

The Wall Street Journal reported that the Trump administration is considering sending 10,000 more troops to the region, adding to the 5,000 already committed to the war. Meanwhile, President Trump extended a deadline for Iran to reopen the Strait of Hormuz and prevent an attack on its energy infrastructure to April 6.

Israel says it will "escalate" its strikes in response to waves of Iranian missile fire, CNN reported, citing Israeli Defense Minister Israel Katz. The two sides continue to exchange fire despite diplomatic efforts.

Two Chinese ships were turned away from the Strait of Hormuz early Friday, and a Thai-flagged cargo ship that had been hit in the waterway has run aground, CNBC reported, citing Iranian state media.

West Texas Intermediate crude oil futures advanced 3.2% to $97.57 intraday.