A local troublemaker called Vahed was killed in the clashes, Brigadier General Mohammad Arab said. His comments were reported in Tuesdays edition of the semi-official daily Jomhouri Islami.
General Arab said that Vahed along with three other individuals were planning to carry out a road block in the village of Kheyrabad.
Iran-Shahr is situated in the restive province of Sistan-va-Baluchistan.
At least 11 members of the Revolutionary Guards were killed and 31 others left injured last Wednesday when a bomb exploded next to their bus in the provincial capital of Zahedan.