The security forces were engaged after the 40-year-old attacker assaulted people waiting in the Shahr-e Rey subway station, the police said in a statement on Saturday
When the attacker snubbed a police warning to surrender his weapon, he was shot in one leg.
The brawl originally started between the knife-wielding man and a cleric, also resulted in injuring of four bystanders.
The attacker has reportedly died on the way to the hospital.
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