Two women hostages with pixellated faces hold up an Islamic State flag in the cafe window during the Sydney siege
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Sydney siege: The rise of the terror threat facing Australia

Two people have died, along with an Islamist gunman, after commandos stormed a cafe held under siege for 16 hours in Sydney, Australia, police have confirmed.

The gunman, identified as an Iranian refugee, had taken dozens of hostages in the cafe in the city's financial district.

One of his demands was to have a flag of Islamic State, the Sunni militant group which recently seized territory in Syria and Iraq, to be delivered to the cafe.

The BBC's Frank Gardner reports on the rise of the terror threat facing Australia.

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