Taiwan stocks opened sharply lower on the 14th as escalating Middle East tensions, higher oil prices and renewed caution from AI industry leaders over advanced model development drove a broad flight to safety. The TAIEX fell as much as 786 points to 45,398, breaking below the 46,000-point psychological threshold and monthly moving-average support, before a rebound in MediaTek, United Microelectronics and financial stocks narrowed the loss. At 10:43 a.m., the index was down 341 points, or 0.74%, at 45,843, with turnover of about NT$373.7 billion, or approximately $11.8 billion. The electronics sub-index fell 0.7%, while the financial sub-index gained 0.19%; the TPEx OTC index declined 0.4%. TSMC traded at NT$2,385, down 1.03%, while memory, PCB and substrate shares remained under pressure. LARGAN Precision fell to its daily limit at NT$5,995, and the market retained 47 stocks priced above NT$1,000. Shen Chien-Hung, fund manager of the Taishin Taiwan Small-Mid Cap Active ETF, said the U.S.-Iran conflict, postponed talks concerning the Strait of Hormuz and intensified fighting in Yemen had pushed oil above $100 a barrel, reviving inflation and Federal Reserve rate-hike concerns. He said AI-related risk warnings had prompted a reassessment of growth prospects, although long-term AI demand and institutional support for the supply chain remained intact. Investors are watching whether the TAIEX can recover 46,000 and its monthly moving average near 46,027, alongside the Federal Reserve's rate decision, U.S. Treasury yields and geopolitical developments.