diff --git a/example_templates/code_block.n0m b/example_templates/code_block.n0m
new file mode 100644
index 0000000..bcacfaf
--- /dev/null
+++ b/example_templates/code_block.n0m
@@ -0,0 +1,5 @@
+<h1>Hello</h1>
+${
+  echo "hello world";
+  echo "\}$";
+}$
diff --git a/src/template_engine.mjs b/src/template_engine.mjs
index 4fe5246..ef55b95 100644
--- a/src/template_engine.mjs
+++ b/src/template_engine.mjs
@@ -1,5 +1,15 @@
 import { TokenStream } from './token_stream.mjs';
 
+
+const htmlEscapeSed = `sed '` +
+ `s/\\&/\\&amp;/g;` +
+ `s/</\\&lt;/g;` +
+ `s/>/\\&gt;/g;` +
+ `s/"/\\&quot;/g;` +
+ `s/'\\''/\\&#39;/g` +
+ `'`;
+
+
 export class TemplateEngine {
   async render(fileName) {
     const ts = new TokenStream();
@@ -14,6 +24,9 @@ export class TemplateEngine {
         case 'raw':
           buffer += this._renderRaw(token.value);
           break;
+        case 'block_statement':
+          buffer += this._renderBlockStatement(token.value);
+          break;
         case 'inline':
           buffer += this._renderInline(token.value);
           break;
@@ -40,6 +53,10 @@ export class TemplateEngine {
     return buffer;
   }
 
+  _renderBlockStatement(value) {
+    return value.replace(/\s*$/, '\n');
+  }
+
   _renderComment(value) {
     return `# ${value}\n`;
   }
@@ -49,7 +66,7 @@ export class TemplateEngine {
   }
 
   _renderInline(value) {
-    return `printf '%s' "${value}" | jq -Rr @html | head -c -1;\n`;
+    return `printf '%s' "${value}" | ${htmlEscapeSed}\n`;
   }
 
   _renderInlineUnescaped(value) {
@@ -57,7 +74,7 @@ export class TemplateEngine {
   }
 
   _renderInlineStatement(value) {
-    return `printf '%s' "$(${value})" | jq -Rr @html | head -c -1;\n`;
+    return `printf '%s' "$(${value})" | ${htmlEscapeSed}\n`;
   }
 
   _renderInlineStatementUnescaped(value) {
diff --git a/src/token_stream.mjs b/src/token_stream.mjs
index 4318979..e76a074 100644
--- a/src/token_stream.mjs
+++ b/src/token_stream.mjs
@@ -3,6 +3,8 @@ import { TemplateSyntaxError } from './errors/template_syntax_error.mjs';
 
 export class TokenStream {
   static ESCAPE = '\\';
+  static OPEN_STATEMENT = '${';
+  static CLOSE_STATEMENT = '}$';
   static OPEN_INLINE = '<%';
   static CLOSE_INLINE = '%>';
   static OPEN_INLINE_UNESCAPED = '<!%';
@@ -64,10 +66,12 @@ export class TokenStream {
         // interpreter that first builds the template and then executes)
         this._skipShebang();
       } else if (this._cs.isNext(TokenStream.ESCAPE)) {
-        // Skip space
-        this._cs.next();
+        // Skip escape
+        this._cs.next(TokenStream.ESCAPE.length);
         // Treat everything as raw until next space
         raw += this._cs.nextWhile((c) => /\S/.test(c));
+      } else if (this._cs.isNext(TokenStream.OPEN_STATEMENT)) {
+        return flushRaw() || this._readBlockStatement();
       } else if (this._cs.isNext(TokenStream.OPEN_INLINE)) {
         return flushRaw() || this._readInline();
       } else if (this._cs.isNext(TokenStream.OPEN_INLINE_UNESCAPED)) {
@@ -102,40 +106,64 @@ export class TokenStream {
     this._cs.next();
   }
 
-  _missingInlineSpaceError(tag) {
+  _missingOpenSpaceError(tag) {
     throw new TemplateSyntaxError(
       this._cs,
-      `Inline tag: "${tag}" must be followed by a whitespace`
+      `Tag: "${tag}" must be followed by a whitespace or new line`
     );
   }
 
-  _readInlineGeneric(tokenType, openTag, closeTag) {
+  _missingCloseSpaceError(tag) {
+    throw new TemplateSyntaxError(
+      this._cs,
+      `Tag: "${tag}" must be preceded by a whitespace or new line`
+    );
+  }
+
+  _readBlockGeneric(tokenType, openTag, closeTag) {
     this._cs.next(openTag.length);
 
     // Check for mandatory space
-    if (this._cs.peek() !== ' ') {
-      this._missingInlineSpaceError(openTag);
+    if (/\S/.test(this._cs.peek())) {
+      this._missingOpenSpaceError(openTag);
     }
     this._cs.next();
 
     let value = '';
     while (!this._cs.eof() && !this._cs.isNext(closeTag)) {
-      const char = this._cs.next();
+      // Handle any escaped closing tag
+      if (this._cs.isNext(TokenStream.ESCAPE)) {
+        // Skip escape
+        this._cs.next(TokenStream.ESCAPE.length);
 
-      if (this._cs.isNext(closeTag)) {
-        if (char !== ' ') {
-          this._missingInlineSpaceError(closeTag);
-        }
+        // Treat everything as raw until next space or eof
+        value += this._cs.nextWhile((c) => /\S/.test(c));
       } else {
-        value += char;
+        const char = this._cs.next();
+
+        if (this._cs.isNext(closeTag)) {
+          if (/\S/.test(char)) {
+            this._missingCloseSpaceError(closeTag);
+          }
+        } else {
+          value += char;
+        }
       }
     }
     this._cs.next(closeTag.length);
     return {type: tokenType, value};
   }
 
+  _readBlockStatement() {
+    return this._readBlockGeneric(
+      'block_statement',
+      TokenStream.OPEN_STATEMENT,
+      TokenStream.CLOSE_STATEMENT
+    );
+  }
+
   _readInline() {
-    return this._readInlineGeneric(
+    return this._readBlockGeneric(
       'inline',
       TokenStream.OPEN_INLINE,
       TokenStream.CLOSE_INLINE
@@ -143,7 +171,7 @@ export class TokenStream {
   }
 
   _readInlineUnescaped() {
-    return this._readInlineGeneric(
+    return this._readBlockGeneric(
       'inline_unescaped',
       TokenStream.OPEN_INLINE_UNESCAPED,
       TokenStream.CLOSE_INLINE_UNESCAPED
@@ -151,7 +179,7 @@ export class TokenStream {
   }
 
   _readInlineStatement() {
-    return this._readInlineGeneric(
+    return this._readBlockGeneric(
       'inline_statement',
       TokenStream.OPEN_INLINE_STATEMENT,
       TokenStream.CLOSE_INLINE_STATEMENT
@@ -159,7 +187,7 @@ export class TokenStream {
   }
 
   _readInlineStatementUnescaped() {
-    return this._readInlineGeneric(
+    return this._readBlockGeneric(
       'inline_statement_unescaped',
       TokenStream.OPEN_INLINE_STATEMENT_UNESCAPED,
       TokenStream.CLOSE_INLINE_STATEMENT_UNESCAPED