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A blast has rocked the main square in the Moroccan city of Marrakesh, killing at least 14 people and injuring 20.
Officials say they believe the blast, which tore through the Argana cafe in Djemaa el-Fna square, a popular tourist destination, was "criminal".
Initial reports had pointed to an accidental gas explosion.
Morocco has seen two months of protests demanding that King Mohammed VI give up some of his powers, amid a tide of uprisings across the region.
The last major terrorist attack in Morocco was in 2003 in the city of Casablanca - 45 people, including a number of suicide bombers, were killed.
'Sounded like a bomb'
Moroccan government spokesman Khalid Naciri told French television that Thursday's casualties involved a number of nationalities but he would not confirm any as yet.
"We worked... on the hypothesis that this could... be accidental. But initial results of the investigation confirm that we are confronted with a true criminal act," he said.
A medical source told Agence France-Presse news agency that 11 of the dead were foreigners, including five women, but this has not been independently confirmed.
A local official also told AFP the blast "could have been perpetrated by a suicide bomber".
Witnesses described hearing a huge blast that sent debris flying into the air.
Briton Hugo Somersham-Jones told the BBC he was at his Marrakesh home, close to the square, when he heard the explosion.
"It sounded like a bomb. I went outside and saw smoke and got to the cafe and saw falling masonry. I came out to the main square and saw the first floor of the cafe in ruins.
"People had fire extinguishers, trying to put out the fire, and others were pulling people out from the building - it was pretty bad."
Mr Somersham-Jones, a hotel owner who has been running his business in Marrakesh for six years, said the square was the main area where people congregate and that there had been a deadly gas explosion last year.
Portuguese tourist Alexandre Carvalho told the Associated Press news agency that he had seen injured people being carried away.
"I believe the injured were mostly tourists, judging by what they were wearing," he said.
The UK Foreign Office said it was aware of the blast and that consular staff had been deployed to offer assistance to any British nationals.
It advised UK nationals to stay away from the square.
Djemaa el-Fna square is a Unesco World Heritage site.
Analysts say the blast could have a serious effect on Morocco's important tourism sector.
One French businessman told Reuters: "You can't find a more emblematic target than Djemaa el-Fna square. With this attack and amid the worrying unrest in the region, tourism will be in the doldrums for some time."
Source: BBC
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