A man took two people hostage at a small business in the centre Paris on Tuesday and demanded that he be put in touch with the Iranian embassy to deliver a message to the French government, police sources said.
The freed hostage was reportedly doused with gasoline and hit in the face as he was freed, according to Lefebvre, head of the FO police union.
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The French police have said they believe the incident isn't related to terrorism.
Videos and images circulating on social media show several police vehicles as well as heavily armed officers at the scene.
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The Paris Police Prefecture confirmed to CNN that there was "a police intervention" underway at Rue des Petites Ecuries in the 10th arrondissement of the French capital. However, his motivation for such an encounter was unknown. The man also claims to have an accomplice outside the building.
Officers from Paris' bomb squad are on the scene.
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Crowds of bystanders were held back by a security perimeter at the site, where police and rescue workers were massed, deploying at least one remote-controlled robot on tracks toward the building where the armed man had barricaded himself. An Interior Ministry official said negotiations with the suspect were taking place.