BBC:

A terrorism expert tells the BBC that Ansar al-Jihad al-Alami, or the Helpers of the Global Jihad, a terror group that claimed responsibility for the explosion in Oslo, was not behind the attack
The smoke is beginning to clear. We are starting to see something like Timothy McVeigh. If this is the case, this will be a big blow for the anti-immigration Progress Party.

UPDATE:
If this is the suspect (his name has been released: Anders Behring Breivik), he could not be more Nordic. Norway might be in for some serious soul-searching.

UPDATE: Not 10 killed in Oslo but nearly 90 by what now is certainly an act of domestic terrorism:

At least 87 people have been killed in two attacks in Norway.

Police said at least 80 people were killed in a shooting spree a youth camp of the ruling Labour Party.

They told reporters early on Saturday they had discovered many more victims after initially putting the death toll at 10.

"The updated knowledge we are sitting on now is at least 80," police chief Oystein Maeland said. "We can't guarantee that won't increase somewhat," he said, adding some were badly injured.