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Definitely Isfahan. In one of your images we can find the missing letters of the city name اصفهان . The initial "alef" is the vertical line below the letters and the final "nun" is the "bowl with a dot" above the letters.
One word in the "arc" is much clearer. کارگران translates as "workers". There may be a translation of "made by hand" or similar but my knowledge of Persian is quite rudimentary so I defer to others.