The official IRNA news agency says the plane, which belonged to the State Aviation Organisation, was on a flight to test some aviation equipment when it crashed today off Kish Island, well known as a tourist resort.
IRNA says rescue teams have rushed to the site of the crash but have not found any bodies.
Iran has had a history of air accidents, often blamed on poor badly maintained planes.
The latest major crash was in Jan. 2011 when a passenger plane broke to pieces on impact while trying an emergency landing in a snowstorm in northwestern Iran, killing at least 77 people.
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