The attack, claimed by the so-called Jaish ul-Adl terrorist group, targeted the bus carrying IRGC border guards travelling between the cities of Zahedan and Khash in south-eastern Iran.
At least 27 have been killed and 13 other wounded in the blast.
The IRGC’s Quds Headquarters said in a statement that an explosive-laden car rammed into the bus, which was taking the personnel back to their homes.
Following the deadly attack, the governor-general of Sistan and Baluchestan declared three days of mourning.