At least two people were reportedly taken hostage in Paris on Tuesday, CNN affiliate BFMTV reported. A Paris police official told CBS News there was no immediate indication of a link to terrorism, however members of the force's elite serious crime unit, known as the BRI, were on the scene.
More than a dozen heavily-armed police officers, firefighters and rescue workers were stationed outside the building where the hostages were being held, located in a crowded neighbourhood in the centre of the French capital.
The standoff began around 4:00 pm (1400 GMT), with BFM television reporting that the man had entered the offices of a start-up company on the Rue des Petites Ecuries, a gritty area of the bustling 10th arrondissement.
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Police also did not confirm reports that one of the hostages was injured. However, his motivation for such an encounter was unknown.
"The man claims to be in possession of a bomb and a handgun", France Bleu said, adding that the hostage-taker demanded to speak with Iranian embassy.
An armed police officer and a sniffer dog search the area. An Interior Ministry official said negotiations with the suspect were taking place.