'Islamic terrorist' wearing 'Property of Allah' t-shirt kills two and injures 14 in Texas shooting spree

A gunman who was wearing a "property of Allah" shirt and opened fire in a Texas bar may have been an Islamic terrorist, local police have said.

The attack on Buford's bar in Austin, Texas killed two people and wounded 14 more just before 2am on Sunday.

The suspect, Ndiaga Diagne, 53, was an ex-New York City resident and US citizen originally from Senegal, according to American media.

Russel Doran, the FBI special agent in charge for San Antonio, said while the investigation was too early to determine an "exact motivation", there were "indicators" on the suspect and his vehicle of a "potential nexus to terrorism".

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His car contained the Koran, and he may have been motivated by the US strikes on Iran.

Fox News reported the suspect was wearing an undershirt featuring the Iranian flag or Iranian representations.

Police killed the suspect as he headed toward East Sixth Street, raising the death toll to three.

The attack in the Texan city's West Sixth Street, a busy street in its entertainment district, is now being investigated by the Joint Terrorism Task Force, which includes members of the Austin Police Department and partners across the state.

Mr Doran was did not share what "type of terrorism" was behind the rampage, but admitted the attack was "potentially an act of terrorism".

Austin Police Chief Lisa Davis said the suspect drove around the bar several times, before turning on his flashers and shooting at patrons on the patio with a pistol.

He then proceeded westbound down Sixth Street where he parked his car and shot his gun at several more people.

The Mayor of Austin, Kirk Watson, said there was "no question in my mind" that the response form police and EMS professionals "made a difference and saved lives".

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White House Press Secretary Karoline Leavitt said President Donald Trump had been briefed on the shooting.

East and West Sixth Street are popular locations for some 55,000 students partying in Austin, which serves as the state's capital and is home to the University of Texas.

Footage from the scene showed a heavy police presence and several bar patrons crouching in fear within Buford's.

Customers were seen tending to the wounded with police officers, as victims were heard screaming in pain.

Texan blood bank We Are Blood have urged people with O-positive and O-negative blood to donate after the attack to treat those with gunshot wounds.

Officials said police and paramedics were stationed near Buford's as routine for a weekend in Austin's entertainment district.

They were able to arrive just 57 seconds after the shooting broke out, according to police.

Police did not make any further comment on the shooter's potential motives.

Three of the 14 wounded remain in critical condition.

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