A man armed with a knife attacked people out shopping in the southeastern French town of Romans-sur-Isère on Saturday, killing two and wounding five, French officials said.
The town is currently under a coronavirus lockdown, although people are allowed out to buy essentials.
"This morning, a man embarked a terrorist journey, killing 2 people and wounding 5 others," Interior Minister Christophe Castaner said during a visit to the town.
Castaner said security services would investigate the circumstances of the incident, working with the national anti-terrorism prosecutor who will decide whether or not to qualify the incident as a terrorist act.
The attacks took place in the morning outside a bakery where customers were queuing, and at shops in the town centre, according to Mayor Marie-Hélène Thoraval, who said the assailant had been arrested.
BFM TV and LCI TV news stations reported that the suspect is a Sudanese national who has been granted asylum in France.
Witnesses told Reuters the man struck at random and in several places while moving around the town centre.
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