The U.S. Geological Survey said the earthquake's epicenter was 22 miles southeast of Abdanan at a depth of 6.2 miles.
The earthquake struck approximately 24 miles from the Iraq border around 7:00 a.m. local time.
According to IRNA, Iran's state-run news agency, 250 people in Ilam province were injured by the earthquake. The governor of Ilam, Majid Asghari, expected rural areas close to the epicenter were badly affected.
Aftershocks knocked out water, electricity and phone lines in Abdanan. Half the homes in eight nearby villages were reportedly destroyed.