Hossein Rezaei, acting governor of the county, confirmed that the incident happened on Sunday evening, saying one person was also injured in the event and was taken hospital for treatment.
Rezaei also said the attacker, described as a “mentally unstable’ man, was arrested as he attempted to flee the Kerman Province.
The police rejected reports that the attack targeted a mourning ceremony for the third Shia Imam and the Prophet’s grandson, Imam Hussein (peace be upon him).
For the past decades, Iran has been hosting millions of Afghans who seek refuge from the insecurity in their own country.