US equity indexes fell in midday trading on Friday as investors assessed US efforts to break the blockade in the Strait of Hormuz.

The Nasdaq Composite fell 1% to 21,876.6, with the S&P 500 down 0.7% to 6,563.2. The Dow Jones Industrial Average shed 0.4% to 45,844.9. Most US sector were in the red, with technology and communication services leading the decliners

US Treasury yields rose, with the 10-year yield up 8.1 basis points to 4.36%. The two-year yield gained 4.2 basis points to 3.88%.

West Texas Intermediate crude oil futures rose 1.5% to $96.94.

The US government is mulling plans to occupy or blockade Kharg Island, crucial to Iran's oil exports to mount pressure on Tehran to allow tanker shipments through the Strait, Axios reported Friday, citing people familiar with the matter.

The US is sending up to 2,500 additional marines and three warships to the Middle East, according to the Wall Street Journal.

In economic news, the Federal Reserve Bank of St. Louis now forecast Q1 US GDP growth of 1.69%, down from an earlier estimate of a 2.05% gain.

In company news, FedEx (FDX) reported fiscal Q3 adjusted earnings late Thursday of $5.25 per diluted share, up from $4.51 a year earlier and above the FactSet consensus analyst estimate of $4.15. Revenue was $24 billion, up from $22.2 billion a year ago and above the FactSet consensus of $23.49 billion. FedEx shares were up 1.3%.