At least three people died and 24 others were injured in a suicide auto bomb attack on the police headquarters in Iran's southeast on Thursday, state media reported, adding that the perpetrator was killed.
The official IRNA news agency said it was a vehicle bombing.
Chabahar city governor Rahmdel Bameri said many people were also wounded in the 10 am (0630 GMT) attack.
IRNA also cited unnamed sources as saying that sporadic shooting had followed the explosion.
"We express our condolences to the government and the people of Iran and the families of the victims of this attack", the Ministry of External Affairs said.
Ansar al-Furqan, a Sunni jihadi group, clamed credit for the attack. Another coordinated June 7, 2017 IS group assault on parliament and the shrine of Ayatollah Ruhollah Khomeini, the leader of Iran's 1979 Islamic Revolution, killed at least 18 people and wounded more than 50.
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Footage showed smoke rising over the city.
Chabahar is a free trade zone and the site of an Indian-backed port complex which is being developed as part of a new transportation corridor for land-locked Afghanistan.
Meanwhile, Iranian Foreign Minister Mohammad Javad Zarif claimed that those behind the attack were backed by foreign countries and would be brought to justice.
In September, gunmen disguised as soldiers opened fire on a military parade in Ahvaz, killing and wounding dozens.
Terror attacks in Shiite Iran are rare, but militants have stepped up action in recent months.
In June past year, IS militants attacked parliament and the shrine of Ayatollah Ruhollah Khomeini, the leader of the 1979 Islamic Revolution, killing at least 18 people and wounding more than 50.