Heavily-armed Australian police stormed a Sydney cafe early yesterday and freed a number of hostages being held there at gunpoint, in a dramatic end to a 16-hour siege in which three people including the attacker were killed.
Police have not publicly identified the gunman but a police source named him as Man Haron Monis, an Iranian refugee and self-styled sheikh known for sending hate mail to the families of Australian soldiers killed in Afghanistan and who was charged last year with being an accessory to the murder of his ex-wife.
During the siege at the Lindt cafe in Sydney's central business district, hostages had been forced to display an Islamic flag, igniting fears of a jihadist attack.
Heavy gunfire and blasts from stun grenades filled the air shortly after 2am local time.
Moments earlier, at least six people believed to have been held captive managed to flee after gunshots were heard coming from the cafe, and police said they made their move in response.
"They made the call because they believed at that time if they didn't enter there would have been many more lives lost," said Andrew Scipione, police commissioner for the state of New South Wales.
An investigation would determine whether hostages were killed by the gunman or died in cross-fire, Scipione told reporters just before dawn.
Police said a 50-year-old man, believed to be the attacker, was killed. A man aged 34 and a 38-year-old woman were also dead, police said. Four other hostages were wounded.
So far 17 hostages have been accounted for, including at least five others who were released or escaped on Monday.
"To the people of Sydney, this was an isolated incident ... Do not let this sort of incident bring about any loss of confidence of working or visiting our city. It was the act of an individual," said Scipione.
Medics tried to resuscitate at least one person after the raid and took away several wounded people on stretchers, said a Reuters witness at the scene.
Bomb squad members moved in to search for explosives, but none were found.
Television pictures showed the attacker appeared to have been armed with a sawn-off shotgun.
Monis was found guilty in 2012 of sending offensive and threatening letters to families of eight Australian soldiers killed in Afghanistan, as a protest against Australia's involvement in the conflict, according to local media reports. He was also facing more than 40 charges of sexual assault.
Although the hostage taker was known to the authorities, security experts said preventing attacks by people acting alone could be difficult.
The Sydney siege underscores the dangers of "lone wolf terrorism", said Cornell University law professor Jens David Ohlin, speaking in New York.
"There are two areas of concern. The first is ISIS (Islamic State) fighters with foreign passports who return to their home countries to commit acts of terrorism," he said.
"The second is ISIS sympathizers radicalised on the Internet who take it upon themselves to commit terrorist attacks to fulfil their radical ideology.
"We are entering a new phase of terrorism that is far more dangerous and more difficult to defeat than al Qaeda ever was."
News footage showed hostages holding up a black and white flag displaying the Shahada, a testament to the faith of Muslims. The flag has been popular among Sunni Islamist militant groups such as Islamic State and al Qaeda.
The incident forced the evacuation of nearby buildings and sent shockwaves around a country where many people were turning their attention to the Christmas holiday after earlier security scares.
In September, anti-terrorism police said they had thwarted an imminent threat to behead a random member of the public and days later, a teenager in the city of Melbourne was shot dead after attacking two anti-terrorism officers with a knife.
The siege cafe is in Martin Place, a pedestrian strip popular with workers on a lunch break, which was revealed as a potential location for the thwarted beheading.
In the biggest security operation in Sydney since a bombing at the Hilton Hotel killed two people in 1978, major banks closed their offices in the central business district and people were told to avoid the area.
Muslim leaders urged calm. The Australian National Imams Council condemned "this criminal act unequivocally" in a joint statement with the Grand Mufti of Australia.