-- Assault on viewing stand at parade wounds over 60 people

-- All four "terrorist" gunmen dead - brigadier general

-- Militant attack strikes blow to elite Iranian force

-- Frantic soldiers under fire, women and children flee

-- Arab opposition group, Islamic State both claim attack

-- Iran suggests enemies Saudi Arabia, Israel to blame

Iranian Supreme leader Ayatollah Ali Khamenei yesterday accused US-backed Gulf Arab states of carrying out an attack on a military parade that killed 29 people, almost half of them members of the country's elite Revolutionary Guards.

Khamenei said the terrorist attack in the southwestern Iranian city of Ahvaz was the continuation of plots hatched by US stooges in the region to create insecurity in the country, reported PressTV.

Khamenei ordered security forces to bring to justice the "criminals" behind one of the worst attacks ever against the Revolutionary Guards, who answer to him.

The allegation will almost certainly ratchet up tensions with Iran's regional rival Saudi Arabia and its Gulf allies, who along with the United States have been working to isolate the Islamic Republic.

"This crime is a continuation of the plots of the regional states that are puppets of the United States, and their goal is to create insecurity in our dear country," Khamenei said in a statement published on his website.

He did not name the regional states he believed were to blame. Israel is also a key US ally opposed to Tehran.

State television said the assault, which wounded more than 60 people, targeted a stand where Iranian officials had gathered in the city of Ahvaz to watch an annual event marking the start of the Islamic Republic's 1980-88 war with Iraq.

An Iranian ethnic Arab opposition movement called the Ahvaz National Resistance, which seeks a separate state in oil-rich Khuzestan province, claimed responsibility for the attack.

Islamic State militants also claimed responsibility. Neither claim provided evidence. All four attackers were killed.

Injured soldiers lying on the ground after a gun attack on a military parade in the southwestern Iranian city of Ahvaz yesterday. The parade was for marking the anniversary of the outbreak of its devastating 1980-1988 war with Saddam Hussein's Iraq. Photo: afp

Women and children also died in the assault, state news IRNA agency reported.

Brigadier General Abolfazl Shekarchi, a senior spokesman for Iran's armed forces, said the attackers had hidden weapons in an area near the parade route several days in advance.

"All four terrorists were quickly neutralised by security forces," Shekarchi told state television. "A four-year-old girl and a wheelchair-bound war veteran were among the dead."

Attacks on the military are rare in Iran.

The bloodshed struck a blow to security in OPEC oil producer Iran, which has been relatively stable compared with neighbouring Arab countries   that have grappled with upheaval  since the 2011 uprisings across the Middle East.

The Islamic Revolutionary Guards Corp (IRGC),the most powerful and heavily armed military force in the country, have been the sword and shield of Shia clerical rule in Iran since its 1979 Islamic Revolution.

The Guards play a big role in Iran's regional interests and have a vast stake worth billions of dollars in Iran's economy.

A video distributed to Iranian media showed soldiers crawling to escape gunfire. One picked up a gun and scrambled to his feet as women and children fled for their lives.

A video on state television's website showed confused soldiers. Standing in front of the stand, one asked: "Where did they come from?" Another responded: "From behind us."

State television blamed "takfiri elements", a reference to Sunni Muslim militants, for the attack. Ahvaz is in the centre of Khuzestan province, where there have been sporadic protests by minority Arabs in predominantly Shia Iran.

The gunmen were trained by two Gulf Arab states and had ties to the United States and Israel, according to Shekarchi.

"They are not from Daesh (Islamic State) or other groups fighting (Iran's) Islamic system ... but they are linked to America and (Israel's intelligence agency) Mossad," he told state news agency IRNA.

There was no immediate Gulf Arab comment on his remarks.

Tensions between mainly Shia Iran and mostly Sunni Saudi Arabia have risen in recent years, with the two countries supporting opposite sides in wars in Syria and Yemen and rival political parties in Iraq and Lebanon.

Iranian President Hassan Rouhani ordered security forces to identify those responsible for the violence, the semi-official ISNA news agency said.

"The response of the Islamic Republic of Iran to the smallest threat will be crushing", Rouhani said on his official website, reported AFP.

The attack occurred a day before Rouhani heads to New York to address the annual UN General Assembly next week.

“Rouhani will use the terrorist attack to justify Iran's presence in the Middle East...The attack will strengthen the IRGC's position inside Iran and in the region,” Tehran-based political analyst Hamid Farahvashian said.

Iran will face pressure to respond to the high-profile attack on the Revolutionary Guards.

"The attacks are doubtlessly meant to tarnish the prestige of the IRGC, but I believe the terrorist incidents will strengthen the IRGC's standing and even mobilise some public support," said Ali Alfoneh, senior fellow at the Gulf Arab States Institute in Washington.

Hardliners like the IRGC have gained standing at the expense of pragmatists in Iran's multi-tiered leadership since President Donald Trump decided in May to pull the United States out of the 2015 international nuclear deal with Tehran and reimpose sanctions in moves to isolate the Islamic Republic.

Kurdish militants killed 10 Revolutionary Guards in an attack on an IRGC post on the Iraqi border in July, where armed Kurdish opposition groups are active.