Spanish Prime Minister Mariano Rajoy also said he was in "contact with all the administrations". And the priority "is to help the injured and facilitate the work of the security forces".

The attack happened at around 17:00 hours local time when a man drove a white van at high speed onto the city's famous Las Ramblas. At the time of the attack, the area was packed with people, many of them tourists.

Latest reports are that authorities believe the attack was not the work of a "lone wolf" and that it was organized by at least three people. An operation is now under way and the anti-terrorism protocol has been activated.

A huge area including Las Ramblas and the nearby Plaza Catalonia and up to the Gran Via have been cordoned off, while large numbers of police and emergency services are now in the area.

The Generalitat also closed nearby metro and railway stations, while people in the area of the attack were asked to stay where they are until the police can indicate an exit route.

Shortly after the attack, the Spanish Ibex-35 stock exchange Thursday saw nearly a full percentage point knocked off its value and slipped back below the 10,500-point mark on a day when the country's banks suffered important losses.

The Ibex opened at 10,544.30 points after three days of successive gains, but closed the penultimate session of the week at 10,443.80 points, a loss of 0.95 percent on the day's trading.

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