After mowing innocent people down, the jihadists then began 'randomly stabbing' people with 12-inch hunting knives in the nearby Borough Market area of bars and restaurants in what authorities described as terrorist incidents.
One man was reportedly stabbed five times in the chest, he has since been rushed to a nearby hospital.
Witnesses said the gang, with metal canisters strapped to their chests, smashed bar windows and cut the throats of drinkers.
Another witness said a 'dark-skinned' man in a red tracksuit 'calmly' stabbed a man three times.
Armed police rushed to the scene where several shots were heard.
Authorities took to twitter to encourage Londoners to 'run, hide, tell' if they were caught in the 'utter chaos'.
Two suspects were shot dead by a marksman outside the Wheatsheaf pub in Borough Market and one was gunned down and believed to be killed, as the remaining two suspects are on the run. 50 armed police entered Monument station with police dogs and bystanders were told to run. Bank and Monument tube stations have been closed. There are also unconfirmed reports of gunfire on Southwark Street.
A terrorist with canisters strapped to his chest was shot by police by Wheatsheaf restuarant in Borough Market (pictured in the foreground). A witness said he was still alive. A second man, believed to be a terrorist, was pictured lying on the ground in the background.
This is the third terrorist attack in three months.
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