As many as seven Americans are being held hostage in Algeria. (Blackwych/Flickr)

An Algerian agency could not confirm the exact number of people held hostage, but confirmed they included citizens of the United States, England, France, Norway and Japan. Of those held hostage, at least two people were killed, including one British national.

There were at least 20 attackers in heavily armed, unmarked vehicles, said an Algerian official. Security forces "encircled the base" trapping all inside, but added the "situation is confused for the moment."

An al Qaeda affiliated group confirmed the attack was carried out in response to Algeria's decision to allow France to use its air space for Islamic attacks in Mali. French troops have been in place since last week, sparking fear that more retaliations are in the works.

A State Department spokeswoman said "the best information that we have at this time is that U.S. citizens are among the hostages."

Read the full story at the NY Times.

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