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At least three people have been killed following a suicide vehicle bombing attack near a police post in Iran's southern port city of Chabahar, state television Press TV reported, quoting security and local officials.

"Police stopped the explosive-laden vehicle and started firing at the driver. who then set off the explosion near the police headquarters in Chabahar", said Bameri.

Meanwhile, Rahmdel Bameri, caretaker of the Governor's Office in Chabahar County, underlined the strategic significance of the city as a free trade zone, which has a deep-water port on the Sea of Oman. No militant group immediately took responsibility for the attack.

"This was a blind terrorist attack", Pakpur told the semiofficial Tasnim news agency.

It hosts the operation of a joint port project between Iran and India.

Chabahar is also the site of a port complex, which is being developed in cooperation with India as part of a new transportation corridor for landlocked Afghanistan.

State authorities did not identify who was behind the attack.

Chabahar city is around 100 km from Iran's border with Pakistan.

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Chabahar is located in the southeastern province of Sistan and Baluchestan, which is home to a Sunni minority in the largely Shia country, and has always been plagued by violence from both drug smugglers and separatists.

In June previous 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.

"Iran will bring terrorists and their masters to justice", he wrote on Twitter.

"Foreign-backed terrorists kill & wound innocents in Chabahar".

Terror attacks in Shiite Iran are rare, but militants have stepped up action in recent months.

Meanwhile, Foreign Ministry spokesman Bahram Qassemi also denounced the "malicious and inhumane terror attack, which he said was aimed at disrupting Iran's economic development, which is underway in cooperation with regional states".

An Iranian ethnic Arab separatist Sunni militant group and Islamic State both claimed responsibility for that attack.