"So far, the martyrdom of three people has been verified in this subversive and anti-security action, with more than 20 other injured who were transferred to hospital", he told the official IRNA news agency. Ahvaz is in the centre of Khuzestan province, where there have been sporadic protests by the Arab minority in predominantly Shi'ite Iran.
A second video capturing the aftermath of the attack shows a chaotic scene of people fleeing and paramedics trying to help the injured.
The Fars news agency said citizens watching the parade first thought that the shooting was inadvertent, however, after a while they realized that it is a terrorist attack.
Foreign Minister Mohammed Javad Zarif blamed the bloodshed on "regional terror sponsors", language that usually refers to Iran's enemies Saudi Arabia and Israel, and "their United States masters", and vowed that Tehran would respond decisively.
Zarif on Twitter said that the gunmen were "terrorists recruited, trained, armed & paid by a foreign regime".
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The report Saturday described the assailants as "Takifiri gunmen", a term previously used to describe ISIS.
The Revolutionary Guards are the most powerful and heavily armed military force in the Islamic Republic and also have a vast stake worth billions of dollars in the economy.
"Two were killed and two arrested", Hosseinzadeh said. The Guards also play a major role in Iran's regional interests in countries such as Iraq, Syria and Yemen. There has been no claim of responsibility for the attack in the city of Ahvaz.
Saturday's attack comes after a coordinated June 7, 2017, Islamic State group assault on parliament and the shrine of Ayatollah Ruhollah Khomeini in Tehran.
Four militants carried out the 9:00am (0530 GMT) attack on the parade commemorating the start of the devastating 1980-88 conflict between Iran and Saddam Hussein's Iraq. At least 18 people were killed and more than 50 wounded.
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