A man was shot dead by police Friday after he allegedly set a car on fire and stabbed three people — one fatally — on a busy street in Melbourne, Australia, in what authorities say was an “act of terrorism.”

The incident began Friday afternoon when police officers responded to reports of a vehicle fire in Melbourne’s central business district.

Officers found the car on fire on the side of a busy street and were confronted by a man “brandishing a knife and threatening them,” Victoria Police Superintendent David Clayton said at a press conference.

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