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No, unfortunately there is no 'Mark All Read' option, and I can get into the push options from the app but that doesn't help either. It wasn't a problem at all on the iPod, just on the new iPhone.
Also I've noticed that on the iPhone notifications aren't marked as seen or read unless you refresh the notifications list (i.e. they stay yellow instead of turning white) whereas on my iPod I only need to open the notifications tab and then they'd all be set to read.