A tsunami warning has been issued in Indonesia following a 7.1-magnitude earthquake.

The quake struck in the Molucca sea between the islands of Sulawesi and North Maluku at a depth of 34 kilometres, according to Indonesia’s geophysics agency.

It caused panic in the city of Ternate, where people ran to higher ground. 

There were no immediate reports of casualties or damage.

The US Geological Survey measured it at magnitude 6.9 quake, centred 185 kilometres (114.8 miles) southeast of Manado, at a depth of 24 kilometers (15 miles).

Indonesia is prone to earthquakes and volcanic eruptions due to its location along the Pacific Ring of Fire.