Though the country earlier this year published a sci-fi MMO, Garshasp - a monster hunter of folklore - is billed is Iran's first AAA-quality video game. It's being made for the PC because trade sanctions prohibit selling dev kits there.
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Thus, Garshasp has been in development since 2006, and its makers are waiting on a publishing deal before taking it international. As for the game itself, it appears to be a straightforward third-person action-adventure game, focusing on combo-heavy melee combat with jumping puzzles and other platforming aspects. You can read up on more about the game at its Wikipedia entry.
Iran's First AAA Video Game Looks Impressive [megamers, thanks mathare92]