Authorities sealed off surrounding streets, evacuated people from buildings, and suspended rail services following the incident at the Lindt Chocolate Cafe in Martin Place, in the heart of the city's business district.
Martin Place is a public pedestrian thoroughfare through the heart of Sydney, joining its parliamentary, legal and retail districts.
Television footage showed people inside the cafe with their hands pressed against the window holding the black flag known as Shahadah, a prayer spoken in mosques daily, and not a flag specific to the Islamic State.
Andrew Scipione, the New South Wales Police Commissioner, said that there was only a single gunman involved.
"I can confirm for you that we have an armed offender in the premises holding an undisclosed number of hostages in the city, in the Martin Place area," he said.
However, he has made clear that police are not in direct contact with the hostage taker.
"My advice is we haven't had contact with the armed offender," he said. "We're still not in a position to determine where the individual is from".
"We are working as long as we need to to bring this to a peaceful outcome," he said.
Martin Place, Sydney Opera House, State Library and all court houses here have been evacuated.
Prime Minister Tony Abbott convened a meeting of his security inner circle in his cabinet to discuss the response to the hostage-taking.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
