"India strongly condemns today's despicable terrorist attack in Chabahar, Iran".
According to the deputy governor of Chabahar, the suicide bomber driving in a Nissan pickup was planning to attack the Chabahar Police HQ, but was stopped by police officers at the front gate and detonated the explosives packed in the vehicle. State television said two police officers were killed, lowering an initially reported death toll of three without explanation.
Mohammad Mehran Aminifar, head of Medical Sciences University in Zahedan, the capital of southeastern Sistan and Baluchistan province, told state TV that 42 people were wounded, including four kids and a pregnant woman.
The terrorist behind the wheel was seeking to force his way into the police post, but failed to do so as local security forces quickly intervened.
"Iran will bring terrorists and their masters to justice", he wrote on Twitter.
Sistan-Baluchistan province, where the bombing hit, has always been a flashpoint, with Pakistan-based Baluchi separatists and jihadists carrying out cross-border attacks.
In October, the separatist Jaish al-Adl (Army of Justice) group kidnapped 12 Iranian border guards in the remote province, five of whom have since been released.
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.
The attack comes as Iran's economy is reeling in the wake of the U.S.re-imposing sanctions lifted under Tehran's nuclear deal with world powers.
Terror attacks in Shiite Iran are rare, but militants have stepped up action in recent months.
That attack was claimed by a Sunni Muslim group called, Jundallah, also known as Soldiers of God. Iran's supreme leader, Ayatollah Ali Khamenei, blamed Saudi Arabia and the United Arab Emirates for the attack, allegations denied by both countries.
Rahmdel Bameri, Chabahar's acting governor, was among the Iranian officials who said two victims were killed by the December 6 car-bomb attack.