Sydney Siege in Sydney, Australia: Hostages Held in Lindt Cafe (LIVE VIDEO) (Update: Seige Over, Two people Dead Along with an Islamist Gunman)

Multiple hostages have been held in a Sydney, Australia cafe by a gunman in what appears to be an Islamist-linked attack.

VIDEO – CNN: Hostage situation inside a Sydney cafe

Australian police locked down the center of the country’s biggest city on Monday after an armed man walked into a busy downtown Sydney cafe, took hostages and forced them to display an Islamic flag, igniting fears of a jihadist attack.

Police said they knew of one armed assailant involved in the incident at the Lindt chocolate cafe in the heart of Sydney’s financial district, but there could be more.

Click HERE for VIDEO

BBC:

A gunman is holding staff and customers hostage at a cafe in Sydney, Australia.

The Lindt cafe in the city centre is surrounded by armed police. Officers have made contact with the gunman.

Five people have been seen running from the building. It is not clear how many remain inside. A black Islamic flag has been displayed at the window.

Prime Minister Tony Abbott said it was “profoundly shocking” that people were being “held hostage by an armed person claiming political motivation”.

He was speaking after chairing a meeting of the national security committee in Canberra.

Earlier Mr Abbott said: “Australia is a peaceful, open and generous society – nothing should ever change that and that’s why I would urge all Australians today to go about their business as usual.”

Senior police officers say they are on a footing “consistent with a terrorist event”.

UPDATE I: ABC – Australia.

Key Points:

• An armed offender is holding an “undisclosed number” of hostages inside the Lindt cafe in central Sydney, police say
• Almost seven hours into the siege, three people were seen running out of the cafe. An hour later another two emerged
• New South Wales Deputy Commissioner Catherine Burn could not confirm how many people were being held hostage, but police believed it was fewer than 30
• Police are working to determine the motivation of the offender and have moved to a footing consistent with a terrorism event
• A black flag with white Arabic writing reading “There is no God but Allah” and “Mohammed is the messenger of God” was waved behind the hostages

UPDATE II: Five people flee from Sydney cafe amid hostage drama.

VIDEO – Watch ABC News 24 Live

UPDATE III: Australia’s Prime Minister Tony Abbott said the gunman was “claiming political motivation.”

Australia’s Prime Minister Tony Abbott said the gunman was “claiming political motivation” but after more than 15 hours had yet to declare the siege a terrorist event. However, police said they were “operating according to our counter-terrorism protocols” and NBC News analyst, ex-FBI-agent Don Borelli, told TODAY that the suspect appeared to be inspired by ISIS.

Chris Reason, a journalist with NBC News’ Australian partner Channel 7, said the hostage-taker was “forcing them to stand against windows, sometimes two hours at a time.” He added that the suspect seemed to be “getting extremely agitated” after the five hostages left.

Police would not confirm how many were still being held inside the Lindt cafe — where a black flag used by Islamist groups in the Middle East has been shown in the window.

UPDATE IV: Sydney siege: Gunman issued demands, threats.

UPDATE V: Sydney siege: Three dead after commandos storm cafe.

Two people died, along with an Islamist gunman, after commandos stormed a cafe in Sydney, Australia, to bring to an end a 16-hour siege.

Local media have named those who died as Lindt cafe manager Tori Johnson, 34 and lawyer Katrina Dawson, 38.

Four people were injured, including a policeman hit by shotgun pellets.

Central Sydney was put in lockdown as the gunman, identified as an Iranian refugee, seized dozens of hostages early on Monday.

The Lindt Chocolat Cafe is located in Martin Place, a busy shopping area in Sydney’s financial district.

The gunman, named as Man Haron Monis, forced some of the hostages to hold up a black Islamic banner at the window of the cafe.