Morgot's servants more terrifying than Sauron's?

[Huinesoron]

Originally Posted by Formendacil

In other words, I think that the terror of the Nazgûl might well match that of something like a Balrog, because where for the Balrog terror is a side-effect of its dread form and demonic might, terror is the primary effect of a Nazgûl. This shows the lesser stature of their creator. Morgoth doesn't focus on creating something that will wreak havoc on emotions: he creates something that will wreak havoc on matter--the terror comes from knowing and sensing that might. Sauron, being substantially weaker, DOES focus on terrorizing emotions.

So what of the dragons? We know Glaurung was able to affect people's minds in many ways, including warping their thinking, freezing them in place, and completely regressing them to a feral state. Could one of the great dragons deliberately induce fear in the same fashion as the Nazgul?