Taiwan's stock market dropped sharply as higher oil prices stoked fears of inflation and rate hikes, bad news for tech investors but a lift for old-economy and energy names.

• The Taiex fell 1.67% to close at the day's low, with foreign investors dumping shares.
• New US strikes on Iran pushed oil prices up, lifting government bond yields and raising worries the Fed will hike rates instead of cutting.
• Tech got hit hardest — TSMC alone accounted for most of the index's drop, with ASE and Delta Electronics falling too.
• Money rotated into safer old-economy plays: refiner Formosa Petrochemical, plastics, food makers, and cheap-looking bank stocks all rose.
• Trading volume shrank as investors stepped aside to wait for clearer signals on Fed policy.

Outlook: Friday's US jobs report is the next big test — a strong number would deepen rate-hike fears and keep pressure on Taiwan's tech shares.