Police treating fatal stabbing in Melbourne as terror-related – Aggressor dies in hospital
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Update: The Islamic State of Iraq and Syria (ISIS) issued a statement claiming responsibility later on Friday.

Earlier: 

A man who set a car on fire and stabbed three people – one fatally – in the Australian city of Melbourne has died in hospital after being shot by police.

Authorities now say they are treating the attack as a terror-related.

The attacker was shot by police after confronting officers on a busy city street, authorities said. He was taken into custody in a critical condition.

The two survivors are in hospital, one in a suspected critical condition. The suspect has not been named.

Police said they were “not looking for anyone further at this early stage”.

“We are now treating this as a terrorism event,” said Victoria Police Chief Commissioner Graham Ashton.

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