A man has been shot dead by police after he stabbed three people—one fatally—and set fire to a car in Melbourne, Australia, in what is being treated as a terrorist attack. Witnesses said they heard a loud explosion and saw a car bust into flames. The suspect then stabbed three people and police officers were “confronted by a man brandishing a knife and threatening them,” Superintendent David Clayton said. He was shot in the chest and died at a hospital half an hour later. “What we know so far about the individual… from what we know, we are treating this as a terrorism incident,” said Graham Ashton, chief commissioner of Victoria Police. He didn’t identify the suspect, but said he was known to police “in respect to relatives that he has that are persons of interest to us.” The attacker had “barbecue-style gas cylinders” inside the car, according to police, but Ashton denied social-media reports that the attacker yelled “Allahu Akbar.” Terrifying video footage showed the suspect confronting police.