The explosion shattered windows of the buildings in the surrounding area, and "terrorist agents were behind the blast", the report said, revealing no details.

IRNA also said that two people were hanged on Thursday after they had been proven behind two fatal bombing explosions in Ahvaz on Jan. 24, which killed seven and injured nearly 90 others.

Ahvaz is the capital city of Khuzestan, an oil-rich province bordering Iraq, and the province has become frequent target of bomb attacks since last June which Tehran blamed on the continuous provocation of some foreign countries.

Khuzestan accounts for almost 90 percent of Iran's nearly 132 billion barrels of proven oil reserve and most of the country's two million ethnic Arabs live in the province.