At least five people were killed and nine others wounded in the attack in southern Jordan, AFP reported, citing security sources.
Fourteen people, including a tourist from Malaysia, are among the hostages, local media say.
A foreign tourist and another civilian were among those killed in the Sunday afternoon shootout, local Al Ghad newspaper reported. Four policemen also died and a number of bystanders were wounded, some seriously, it added.
Reuters reported that a Canadian woman was among the dead, citing police.
Unidentified gunmen in cars opened fire on security forces in the area where the 12th century Karak Crusader castle, one of the largest in the eastern Mediterranean, is located.
Jordan’s prime minister, Hani al Mulki, said that “a number of security personnel” had been killed, adding that at least 10 militants are holed up in the castle, which is now under siege by security forces.
More law enforcement and aircraft have been deployed at the scene, as the operation is ongoing.
There have been unconfirmed reports on Twitter saying that Islamic State (IS, formerly ISIS/ISIL) is celebrating the news, claiming at least 20 casualties.
RT
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