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Two bomb blasts near the tomb of Iranian General Qasem Soleimani killed at least 103 people on the fourth anniversary of his assassination by the United States, Iranian state media reports.
Dozens of other people were injured when the explosions hit a procession near the Saheb al-Zaman mosque in the city of Kerman.
Videos showed bodies in a street and ambulances rushing to the scene.
Iran's Supreme Leader, Ayatollah Ali Khamenei, vowed that the "terrorist attack" would result in a "firm response."
There were no immediate claims from any group over what is considered the deadliest such attack in Iran in 42 years. Suspicion could fall on Arab separatists and jihadist groups such as the Islamic State (IS), which have carried out attacks against civilians and security forces in the country in recent years.
Soleimani was considered Iran's most powerful figure after the Supreme Leader before he was killed in a US drone strike in neighboring Iraq in 2020.
Wednesday's attack comes amid heightened tensions in the region after the deputy leader of the Iranian-backed Palestinian group Hamas was killed in an apparent Israeli drone strike in Lebanon.
Images from Iranian state television showed large crowds taking part in a procession along a street lined with banners bearing the image of Qasem Soleimani at the time of the explosions.
People were heard screaming and then seen running away in panic after one of the explosions. Iranian media reported that the first bomb exploded around 3:00 p.m. local time (11:30 GMT), about 700 meters (2,300 feet) from the Garden of Martyrs cemetery around the Saheb al-Zaman mosque on the eastern outskirts of Kerman.
The second attack took place about 15 minutes later, about a kilometer from the cemetery, and targeted people who had fled the first, the statement said.
The governor of Kerman province told the official IRNA news agency that both explosions occurred outside security checkpoints and that authorities were certain they were caused by bombs. However, he added that it was not yet clear whether these explosions were triggered remotely or by suicide bombers.
The hardline Tasnim news agency, linked to Iran's Revolutionary Guards, previously cited sources as saying that "two bag bombs" appeared to have been detonated "remotely". "We were walking towards the cemetery when suddenly a car stopped behind us and a dustbin containing a bomb exploded," a witness told the ISNA news agency.
"We only heard the sound of the explosion and saw people falling."
State media, citing local emergency services, said 103 people were killed and 211 others injured in the blasts. Some of the injured are in critical condition, she added.
The Iranian Red Crescent said the victims included at least one paramedic who was sent to the site of the first explosion and was hit by the second.
Interior Minister Ahmad Vahid said the second blast killed and injured most people and that an investigation had been launched to determine who was behind the attack. On Wednesday evening, Ayatollah Ali Khamenei issued a statement expressing his condolences to the families of the victims.
“The evil and criminal enemies of the Iranian nation have once again caused a disaster and killed a large number of dear people in Kerman,” he said.
“Whether it is those with innocent blood on their hands or corrupt minds that led to this atrocity, they will face strong action and just punishment with immediate effect,” he added. “They should know that this disaster will have a harsh response, God willing.”
President Ebrahim Raisi called the attacks a "cowardly act" carried out by "Iran-hating criminals and servants of terror and darkness."
Former British ambassador to Iran Rob Macaire told the BBC it was unclear who was behind the attacks. “There are opposition groups that have the capacity, albeit very limited, to carry out violent attacks,” he said. “I don't think they are attacks that threaten the regime, but they will certainly raise the temperature.”
United Nations Secretary-General António Guterres strongly condemned the attack and expressed his "deep condolences to the bereaved families, the people and the government" of Iran, his spokesman said.
The EU condemned the attacks "in the strongest terms" and expressed its "solidarity with the Iranian people", while Russian President Vladimir Putin called the attack "shocking for its brutality and cynicism".
The leader of the Lebanese Hezbollah movement – a powerful armed group that, like Hamas, is supported by Iran – said the victims were “martyrs who died in the same path, cause and struggle led by” Soleimani.
As commander of the Revolutionary Guards' overseas operations wing, the Quds Force, Soleimani was an architect of Iranian policies across the region. It was responsible for the Quds Force's clandestine missions and providing guidance, funding, weapons, intelligence, and logistical support to allied governments and armed groups, including Hezbollah and Hamas.
Then-US President Donald Trump, who ordered the drone strike in 2020.
The Iranian government has accused the United States of an act of international terrorism and issued arrest warrants for Trump and other officials.
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