The match took place at the Mordovia Arena in the Russian city of Saransk on Monday. Portugal are now set to face Uruguay, who have finished as Group A winners, in their first match of the knockout stage.

Portugal's Ricardo Quaresma opened the scoring right before the half time break, firing a stunning strike into the top-left corner from outside the penalty area.

Cristiano Ronaldo could have doubled Portugal’s lead after his side was awarded a penalty, but Iran goalkeeper Alireza Beiranvand produced a good save to deny the 33-year-old.

However, deep into stoppage time, the referee after consulting with VAR decided to award Iran a penalty for handball against Cedric Soares.

The decision was extremely harsh, but Karim Ansarifard dispatched the spot kick with aplomb to deny Portugal top spot in the group, as they were pipped by Spain on goal difference, with both sides finishing on five points.

Portugal will face Uruguay in Sochi on Saturday, while Iran are knocked out of the tournament.