A suspected radical Islamist fired on the U.S. embassy in the center of the Bosnian capital with an assault rifle on Friday in an attack that lasted 30 minutes.

A police officer was seriously wounded and shop workers scrambled for cover in Sarajevo's busy city center until a police sniper wounded the gunman and he was arrested. Several bullets struck the outside wall of the compound.

"We have opened an investigation into a criminal act of terrorism," prosecutor Dubravko Campara told a news conference. He said two hand grenades had been found on Jasarevic.

Bosnia's state prosecutor identified the bearded man, armed with a Kalashnikov automatic rifle, as 23-year-old Mevludin Jasarevic, a Serbian citizen from the mainly Muslim town of Novi Pazar. A Reuters photograph showed him to be a tall man with a brown coat and a long beard.