German federal prosecutors are investigating a fatal stabbing at a Berlin Pride event as a possible act of Islamic extremist terror, officials announced Wednesday.

The attack, which occurred Sunday, resulted in the death of one bystander and wounded another, according to initial reports.

Authorities have stated that the primary suspect, whose identity has not been released, is believed to have acted with Islamist motivations. The investigation has been transferred to the federal prosecutor general's office due to the potential extremist nature of the crime.

The incident occurred during the Christopher Street Day (CSD) parade, Berlin's annual LGBTQ+ Pride celebration. The violence has sent shockwaves through the city and raised concerns about security at public events.