The European champions, needing a draw to qualify, went ahead with a stunning Ricardo Quaresma goal in the 45th minute.
Ronaldo had a chance to extend the lead when he won a penalty in the 51st minute but Iran goalkeeper Alireza Beiranvand dived to his left to save his effort from the spot.
Spain will play Russia in the last 16, while Portugal will take on Uruguay.
Watch as Ronaldo missed the penalty kick:
Beiranvand could— Mahyurr (@mahyurr) June 25, 2018
Degea could not!
Iran's goalkeeper is the best GK of World Cup#iran #irn #por #Portugal #IRNPOR #IRAPOR #porirn #porira #TeamMelli #WorldCup2018 #WorldCupRussia2018 #worldcup #FifaWorldCup2018 #FifaWorldCup #Russia2018 pic.twitter.com/pVUsMnNH3k
Iran played well!
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