Armed Men Take Hostages In Australia Center Biggest City

Australia center biggest city has been locked down on Monday by the
Australian police 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, including paramilitary officers, cordoned off several blocks
around the cafe as negotiators tried to defuse one of the biggest
security scares in Australia for decades.

Snipers and a SWAT team took up positions around the cafe and police
helicopters flew overhead.

At least five hostages have been released or escaped since the
mid-morning siege began, with terrified cafe workers and customers
seen running into the arms of paramilitary police.

Reports gathered form Reuters, indicated that about 15 hostages could
still be seen inside the cafe, with gunman rotating hostages, forcing
them to stand against windows, sometimes 2 hours at a time.

The suspect has been seen inside the cafe wearing a backpack and a bandana.

News organisations say he has contacted them to issue demands, which
police have urged media not to report.

News footage also 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.

Prime Minister Tony Abbott, who has warned of militant plans to strike
Australian targets, said there were indications the hostage-taking was
politically motivated.

"This is a very disturbing incident. I can understand the concerns and
anxieties of the Australian people," Abbott told reporters in
Canberra.

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 following earlier security scares.

Muslim leaders urged calm, with the Australian National Imams Council
condemning "this criminal act unequivocally" in a joint statement with
the Grand Mufti of Australia. An inter-faith prayer meeting at one of
Sydney's grand mosques passed off peacefully despite threats of
protests from far-right groups.

Currency market traders said the hostage news may have contributed to
a dip in the Australian dollar, which was already under pressure from
global risk aversion as oil prices fell anew.

Several media outlets reported they had been contacted by hostages
passing on claims and demands from the gunman, including the possible
presence of explosives in the building and elsewhere in the city.

Police said they were aware of media reports but said the "situation
is contained in one area".

Concerns about an attack in Australia by Islamists have been growing
for more than a year, with the security agency raising its national
terrorism public alert to "high" in September.

That month, a spokesman for the Islamic State urged supporters in
Western nations, including Australia, to attack civilians or military
personnel at home.