04:47 PM EDT, 03/27/2026 (MT Newswires) -- US equity indexes slumped on Friday as reported comments from Secretary of State Marco Rubio suggesting that the Iran war is likely to end within "weeks" validated concerns that the month-long conflict will be dragged out.

The Nasdaq Composite sank 2.1% to 20,967.2, with the S&P 500 down 1.6% to 6,373.7, and the Dow Jones Industrial Average 1.7% lower at 45,181.4.

The US expects its operation against Iran to conclude within weeks, not months, and Washington can meet all its objectives without using ground troops, Reuters cited Secretary of State Marco Rubio as saying on Friday.

Rubio told reporters after meeting G7 counterparts in France that Washington was "on or ahead of schedule in that operation, and expect to conclude it at the appropriate time here - a matter of weeks, not months."

Rubio's comments follow President Donald Trump's move to extend a deadline for Iran to reopen the Strait of Hormuz and prevent an attack on its energy infrastructure to April 6.

However, Iran hasn't asked the US for a pause on strikes on its energy plants and is yet to deliver a final response to the Trump administration's 15-point proposal to end the war, the Wall Street Journal reported, citing peace talk mediators.

Meanwhile, 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.

Furthermore, Israel plans to "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.

West Texas Intermediate crude oil futures surged 6.4% to $100.49, and Brent crude futures soared 5.2% to $113.57.

"The Hormuz closure quickly turned from a shipping disruption to a significant loss of global supply," Morgan Stanley said. "Despite offsets from bypass pipelines and strategic petroleum reserve releases, the market is short by a multiple of the peak-loss feared back in 2022."

The firm does not see the energy market reverting to the pre-conflict levels anytime soon.

The CBOE Volatility Index, also known as a fear gauge, soared 13% to 31.05.

In economic news, the University of Michigan consumer sentiment index was revised down to 53.3 for March from a preliminary estimate of 55.5, compared with expectations for 54.0 in a Bloomberg-compiled survey. The final reading in February was 56.6.

Respondents to the Michigan survey expected a 3.8% inflation rate over the next year, up from 3.4% in February, and 3.2% annual inflation over the next five years, down from 3.3% in February.

US Treasury yields were mixed, with the two-year down seven basis points to 3.91%. The 10-year yield rose 1.4 basis points to 4.43%, its highest since July 2025.

In precious metals, gold futures jumped 2.9% to $4,502.9 and silver futures surged 3% to $69.99.