Dozens of hostages were trapped inside a central Sydney cafe on Monday, with local television showing some being forced to hold up a black flag with white Arabic writing in the window, raising fears of an attack linked to Islamic militants.
During an address to the nation, Australian Prime Minister Tony Abbott said his thoughts and prayers go out to those involved.
(SOUNDBITE) (English) AUSTRALIAN PRIME MINISTER TONY ABBOTT SAYING:
"As the situation unfolds there will be operational updates provided by the New South Wales police. I want to assure people that the ordinary business of the government must go on. And it will go on, and that's why treasurer Hockey and Finance Minister Cormann will shortly be releasing the economic and fiscal outlook as planned. Finally this is a very disturbing incident... I can understand the concerns and anxieties of the Australian people at a time like this... but our thoughts and prayers must above all go out to the individuals who are