The deputy commander of Iran's powerful Revolutionary Guards warned U.S. and Israeli leaders on Monday to expect a "devastating" response from Tehran for "what you have done" in carrying out Saturday's terrorist attack on a military parade in the southwestern city of Ahvaz that killed 25 people and wounded 60.
The Tasnim news agency quoted Gen. Hossein Salami as saying the "horrific crime" exposed the "dark side" of an alliance that the United States, Saudi Arabia and Israel had created to counter Iranian influence in the region.
"You have seen our revenge before. You will see that our response will be crushing and devastating and you will regret what you have done," Salami said in a speech before the victims' funerals.
Iran's Supreme Leader Ayatollah Ali Khamenei said Monday that the terrorists had been paid by Saudi Arabia and the United Arab Emirates, and that Iran would "severely punish" those behind the bloodshed.
Iranian President Hassan Rouhani, who is in the United States to attend the U.N. General Assembly, said, "I would like to send prayers for a peaceful rest to the souls of martyrs who were martyred on Saturday during the cowardly terrorist attacks against them in the city of Ahvaz, and announce here the ever-more-resolute decision of my nation in the fight against terrorism in all of its forms."
Speaking at the funeral ceremony, Iranian Defense Minister Amir Hatami said the terrorists could expect the Islamic republic's "harsh revenge."
Iranian Intelligence Minister Mahmoud Alavi said a large network of suspects had already been arrested in connection with the attack. He did not elaborate, but Iranian rights activists said more than 300 people had been arrested.
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U.S. Defense Secretary Jim Mattis on Monday dismissed Iran's threats of revenge and said it was "ludicrous" for Tehran to allege U.S. involvement.
Mattis told reporters at the Pentagon that Iran's threat did not give him any concern, saying, "We've been very clear that they shouldn't take us on like that. And I am hopeful that cooler, wiser heads will prevail."
He said Iran has "so far blamed at least three countries and I think one terrorist group. We'll see how long the list goes. But it'd be good if they knew what they're talking about before they started talking."
In Ahvaz, thousands packed the streets to mourn the victims of Saturday's attack, many chanting "Death to Israel" and "Death to America."
The coffins were wrapped in flags and were carried by mourners. Many held pictures of 4-year-old Mohammad Taha Eghadami, who was killed in the attack.
Iranian media quoted an Intelligence Ministry statement as saying that "weapons, explosive materials and communication equipment were seized in the house that belonged to the five-member terrorist group that carried out the attack."
Iran's Fars and IRNA news agencies said on Monday that five attackers were killed, not four as previously reported by state media. The body of the fifth assailant had not been identified as it was mixed up with other casualties, Fars said.
The secretary of Iran's National Security Council said Tehran needed to talk to its neighbors to avoid tensions.
"It's essential to be fully aware and increase our constructive dialogues to neutralize the plots of enemies who want to create suspicion and disagreement among regional countries," Ali Shamkhani said.
He also said U.S. sanctions against Iran were illegal and President Donald Trump was using them as a tool for "personal revenge."
Speaking with reporters, Mattis said it was clear that Iran still did not know what had happened. He stressed the United States had no advance knowledge that such an attack was possible.
"I don't get woken up with phone calls over something we know is going to happen. It's just ludicrous to say we had anything to do with it," he said.
U.S. Secretary of State Mike Pompeo, asked by a Fox News interviewer if the United States played any role in the attack, said the loss of innocent lives was tragic, adding, "When you have a security incident at home, blaming others is an enormous mistake."
There has been no reaction from Saudi Arabia or Israel.