Iran's revolutionary prosecutor yesterday banned the newspaper of President Abol Hassan Bani-Sadr, which has criticized the clergy-dominated government. The ban follows attempts to isolate the president in his long-running power struggle with the dominant Moslem clergy.

An official statement, read over state radio, announced that the president's newspaper Islamic Revolution, the daily of the pro-Moscow Tudeh (Communist) Party, the liberal daily Mizan and three other publications were banned for an indifinite period.

These newspapers, it said, "issued articles which violate the basis of Islam and the public rights of the Moslem people and create differences, especially in the war situation."

It said the artgicles had provoked public protests, and a three-member commission set up by revolutionary leader Ayatollah Ruhollah Khomeini had found them in violation of the law. Last week the commission, set up to reconcile Iranhs bickering officials, told the president he violated the orders of Khomeini by continuing to criticize his opponents.

It also recommended that legal steps be taken against Islamic Revolution, of which the president is the license holder, and other publications. The popular evening newspaper, printed by a government-owned publishing house, has been the president's main platform for criticizing the leaders of the Moslem fundamentalist Islamic Republican Party, which dominates the government, judiciary and parliament.