The car exploded at the same time the UK was preparing to fall silent to mark Remembrance Sunday.
A car explosion in Liverpool that left a passenger dead and the driver injured has been declared as a terrorist attack.
The car, a taxi, exploded outside Liverpool Women's Hospital at 11am on Sunday.
Detectives from Counter Terrorism Police North West said it appeared the blast was caused by an "improvised explosive device" made by the taxi passenger.
The motivation for the attack is "yet to be understood", they said.
Four men, aged 29, 26, 21 and 20, have been arrested in connection with the explosion,
reports the BBC.
Assistant Chief Constable Jackson said the taxi driver had picked up the fare just 10 minutes from the hospital.
"The fare - a man - had asked to be taken to Liverpool Women's Hospital, which was about 10 minutes away," he said. "As the taxi approached the drop-off point at the hospital an explosion occurred from within the car.
"This quickly engulfed it in flames. Remarkably, the taxi driver escaped from the cab."
The driver, named locally as David Perry, has been hailed a hero for reportedly locking the attacker inside the vehicle.
He was treated for his injuries and has already been released from hospital.
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The Liverpool Women's Hospital is just a mile from Liverpool Cathedral where military veterans and civic figures attended a Remembrance Sunday service.
This news comes after earlier reports of armed police in the residential area of Rutland Avenue, Sefton Park. Residents of the area told the
Liverpool Echo they were told to remain indoors by police.
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An unnamed resident said that the situation was particularly "alarming" given that it was getting dark and no one knew what was happening.
She said: "At the Ullet Road entrance there are about four police vehicles, one is jackknifed in the middle of the road and another vehicle is in front of that.
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"At the other end it's cordoned off and there is police there. At the Ullet Road end there are what looks like police marksmen.
"All the residents have been told to stay indoors and the police gave no further information."
Similar reports came from Boaler Street but police officials have since confirmed that the two incidents were not connected.
