The Iranian Foreign Ministry issued a statement saying the perpetrators behind the attack will not go unpunished. Iranian press agency Fars reported 41 casualties, both military and civilian.
The official news agency of Iran said that the suicide attack happened on the Khash-Zahedan road when a vehicle filled with explosives blew up besides the bus carrying a unit of the Guards ground forces.
In June 2017, gunmen and suicide bombers attacked Iran's parliament in central Tehran and the Mausoleum of founder of Islamic Revolution Guard Ayatollah Rohullah Khomeini killing at least 13 people.
The Sunni group Jaish al-Adl (Army of Justice), which says it seeks greater rights and better living conditions for the ethnic minority Baluchis, claimed responsibility for the attack, the semi-official Fars news agency reported.
It is reportedly affiliated to Al Qaeda, and has claimed responsibility for two attacks in the last few weeks, including one on a police station in the city of Zahedan, and one that killed a Revolutionary Guard. Some of its fighters are seasonal, including some from Pakistan, who are called upon for occasional operations against Iranian security forces.
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"This terrorist act happened a short time ago and according to reports at least 27 have been martyred and 20 have been wounded", an informed source told IRNA.
Almost a year after President Donald Trump pulled the United States out of the landmark Iran nuclear deal, the country's economy has buckled under aggressive USA sanctions. Prince Mohammed is due in Pakistan, a major recepient of the kingdom's largess, in the coming days. Trump withdrew the US from the accord last May. There have been sporadic protests in the country as well, incidents applauded by Trump amid Washington's maximalist approach to Tehran.
Dubbing the meeting the "WarsawCircus", Foreign Minister Mohammad Javad Zarif said it was "no coincidence that Iran is hit by terror on the very day" that the talks began in the Polish capital. Zarif wrote on Twitter.
Khamenei, who earlier approved President Hassan Rouhani's outreach to the West during the nuclear deal negotiations, dismissed any future dealings with the U.S.
"The Warsaw conference, I believe, is dead on arrival".