Australian PM says Melbourne siege 'a terrorist attack'

MELBOURNE (Reuters) - Australian Prime Minister Malcolm Turnbull said on Tuesday police were treating a deadly siege in the city of Melbourne as an "act of terrorism" after a claim by the Islamic State group that one of its fighters was the gunman responsible.

Police shot dead the gunman, Yacqub Khayre, who they said had a long criminal history, on Monday after he killed a man in the foyer of an apartment block in Melbourne, Australia's second-largest city, and held a woman hostage inside.