Ten dead after truck flying IS flag drives into crowd in New Orleans

Vehicle and gun attack injures dozens gathered to celebrate new year FBI investigating 'act of terror', while police say suspect has been killed

- Edward Helmore, Ramon Antonio Vargas and Oliver Laughland,

At least 10 people were killed and more than 30 injured when a vehicle flying an Islamic State flag drove into a crowd in the tourist district of New Orleans early on New Year's Day.

The FBI said Shamsud-Din Jabbar, a 42-year-old US citizen from Texas, drove a Ford pickup truck into a crowd on Bourbon Street at about 3.15am.

After getting out of the truck he fired at police - injuring two - before officers shot him dead.

The FBI said agents were trying to establish how Jabbar had acquired the truck, which appeared to have been rented.

In addition to an IS flag in the back, weapons and a "potential" improvised explosive device were found by agents.

Meanwhile, just two hours after the vehicle incident a fire broke out at a short-term rental home linked to Jabbar in the St Roch neighbourhood two miles from the scene of the attack.

An emergency management source told the Guardian that numerous residents close to the address were evacuated because officials suspected explosives could be in the home.

The FBI said it did not believe Jabbar was "solely responsible" for the truck attack and asked the public for help tracking down associates.

The scene of the attack - the corner of Canal and Bourbon streets - is at the foot of the city's French Quarter, a nightlife hub popular with tourists and locals.

In a news conference last night, the New Orleans police superintendent, Anne Kirkpatrick, said: "It was very intentional behaviour.

This man was trying to run over as many people as he possibly could. He was hellbent on creating the carnage and the damage that he did." A senior law enforcement source briefed on the attack told the Guardian that Jabbar was equipped with a rifle, a helmet and body armour.