03:51 PM EDT, 03/20/2026 (MT Newswires) -- US equity indexes traded lower ahead of Friday's close amid reports that the US may put boots on the ground to pressure Iran into unblocking the Strait of Hormuz, and as President Donald Trump called NATO allies "cowards" for not helping secure the choke point.

The Nasdaq Composite dropped 2.2% to 21,595.7, with the S&P 500 down 1.7% to 6,492 and the Dow Jones Industrial Average lower by 1.2% to 45,477.8. Most US sectors were in the red, led by utilities, real estate, and technology.

The US government is considering plans to occupy Kharg Island, which is vital to Iran's oil exports, in anticipation that the move would pressure Tehran to allow oil tankers to pass through the Strait of Hormuz, Axios reported Friday, citing people with knowledge of the matter.

"We've always had boots on the ground in conflicts under every president, including Trump. I know this is a fixation in the media, and I get the politics, but the president is going to do what's right," a White House official said, according to Axios.

Meanwhile, the US military is deploying thousands of Marines to the Middle East, officials told Reuters on Friday. President Donald Trump called NATO allies "cowards" for not helping the US secure the Strait of Hormuz, which remains effectively shut as global oil prices rise, CNN reported. US officials are trying to avert a potential months-long closure of the strait, multiple sources told CNN.

West Texas Intermediate crude oil futures jumped 3% to $98.45.

US Treasury yields rose, with the 10-year up 10.5 basis points to 4.39% and the two-year higher by 5.4 basis points to 3.89%.