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Police have launched an armed response to reports of gunfire as Oxford Street was placed on lock down on one of the busiest shopping nights of the year.

Oxford Circus Tube station was evacuated and shoppers were told to stay indoors as emergency services swarmed the capital's busiest shopping street.

Scotland Yard has warned tourists and shoppers at the scene to go into a building and stay inside.

Police were called to reports of shots fired on Oxford Street and at the Tube station shortly after 4.30pm.

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Oxford Street false terror alert 14 show all Oxford Street false terror alert 1/14 The scene in Oxford Street in London after police responded to a number of reports of shots being fired PA 2/14 People run down Oxford Street following reports of shots being fired REUTERS 3/14 People run down Oxford Street following reports of shots being fired REUTERS 4/14 Armed London police officers react to the incident EPA 5/14 Armed police officers stand on Oxford Street REUTERS 6/14 Pedestrians react and rush from the scene during the incident EPA 7/14 The scene in Oxford Street after police responded to the false alarm PA 8/14 Pedestrians react near Oxford Circus tube station EPA 9/14 Armed London police officers at the scene in Oxford Street EPA 10/14 Met Police officers move people away from Oxford Street EPA 11/14 Met Police officers react to the incident EPA 12/14 Armed police patrol near Oxford street as they respond to the incident AFP/Getty Images 13/14 Armed police patrol along Oxford street AFP/Getty Images 14/14 Met Police officers at the scene EPA 1/14 The scene in Oxford Street in London after police responded to a number of reports of shots being fired PA 2/14 People run down Oxford Street following reports of shots being fired REUTERS 3/14 People run down Oxford Street following reports of shots being fired REUTERS 4/14 Armed London police officers react to the incident EPA 5/14 Armed police officers stand on Oxford Street REUTERS 6/14 Pedestrians react and rush from the scene during the incident EPA 7/14 The scene in Oxford Street after police responded to the false alarm PA 8/14 Pedestrians react near Oxford Circus tube station EPA 9/14 Armed London police officers at the scene in Oxford Street EPA 10/14 Met Police officers move people away from Oxford Street EPA 11/14 Met Police officers react to the incident EPA 12/14 Armed police patrol near Oxford street as they respond to the incident AFP/Getty Images 13/14 Armed police patrol along Oxford street AFP/Getty Images 14/14 Met Police officers at the scene EPA

A spokesman said: "Police have responded as if the incident is terrorist related. Armed and unarmed officers are on scene and dealing along with colleagues from British Transport Police."

The spokesman later added: "To date police have not located any trace of any suspects, evidence of shots fired or casualties. Updates will be provided as soon as we have them."

Witnesses reported being locked inside shops including Zara and Urban Outfitters.

Other panicked shoppers began screaming and running amid the large police presence in the area.

Witness Lilly Steger told the Standard: "There were screams and then everybody started running. I thought originally it was a car driving into traffic but then we heard gunshots. Everybody ran into stores or hotels.

"A window shattered in front of us at Debenhams but I’m not sure if it was a gun or somebody in a panic trying to get it.

"We ran in a hotel. police aren’t letting anyone outside yet."

American Laila Harilela told CNN: “I was on the corner of Oxford and Poland when there was a big scream from a stampede of people rushing towards myself and maybe four or five other people.

“None of us knew what to do so we ran with the stampede and tried to get into any shops and EE was very kind enough to allow ten of us in.

“It was a whole stampede that pushed us through on Oxford Street and as we were on the ground floor of EE we heard little pops

“Now we’ve been pushed up to a higher level to keep us safe.”

Special effects worker Ellis Parry was near the scene.

He said: ‘I was with colleagues and we were walking back to the office at the time and we heard sirens going. We were told by work to get back to the office.

"People were running everywhere. Police told us to go inside. We are now inside and don’t know what’s going on.”

One person wrote on Twitter: "Everyone sprinting off Oxford Street after loads of sirens what has happened?"

Another witness named Caroline Rigby said: "Loads of people running. Now locked in building with street in lockdown."