At least one gunman has taken several people hostage at a cafe in Australia.
Part of Martin Place in Sydney – home to the Reserve Bank of Australia, commercial banks and close to the New South Wales state parliament – has been closed off by armed officers.
Live television footage shows people inside a cafe standing with their hands pressed against the windows, and a black flag with Arabic writing.
Eye witnesses have said the flag looks similar to those used by Islamic State fighters in Iraq and Syria.
New South Wales police have asked people to avoid the area.
Major landmarks, including the Sydney Opera House, have been evacuated.
‘Terrorists’ takes Australian cafe customers hostage