Officials in the Philippines say a powerful grenade explosion has killed two people and wounded at least 30 others outside a crowded bar in the south of the country.

Army Col. Daniel Lucero says investigators are trying to identify the attackers who left or lobbed the grenade that exploded late Saturday outside the El Sentro Resto Bar in Iligan city. Police found the pin of the grenade, which also damaged a number of parked cars and sent people fleeing in panic.

Col. Lucero said on Sunday it remained unclear if Muslim rebels, al-Qaeda-linked militants or extortion gangs were behind the blast or if it was sparked by feuding civilians.

Iligan is an industrial and trading centre. It has been targeted by Muslim separatist rebels in the past.

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