The wreckage of the aircraft has been found and the whole passenger are pronounced dead.
The bodies are identifiable, the Iranian Law Enforcement Force’s information center announced.
The turboprop plane had taken off from Tehran on Saturday evening and was bound for Zahedan, the capital of the southeastern province of Sistan and Balouchestan.
It disappeared from the radar screen at 19:20 local time (1550 GMT) around the southeastern city of Anar.
The seven dead include five police officers, including a general and three colonels.
On Saturday night, General Rahimi, commander of Sistan and Balouchestan police forces, told Tasnim that the passengers were staff of the police investigation department, who had been dispatched to the southeastern province to probe into a recent terrorist attack in the city of Saravan that had taken lives of four police officers.
Back on Thursday morning, a car bomb attack on a police station in the border city left one police officer dead and three others injured. The attack came a day after three other police forces were killed in a separate terrorist attack in the city.