Iraq opened the scoring in the 11th minute, when Mohanad Ali capitalized on a poor clearance by Irans defense to rifle the ball into the roof of the net.
Iran drew level in the 25th minute, as Mohammad Mohebi supplied Ahmad Nourollahi with a delightful cut-back from the edge of the penalty box, and the Persepolis midfielder fired into the bottom corner to make it 1-all.
With 10 minutes to go, Iran reduced to 10 men as Masoud Shojaei received his marching orders for a second booking.
That was followed by a dramatic finish for Iraq as Ali Abbas added his name to the scoresheet after heading-home in the second minute of addedtime.
Iraq are now at the summit of group C with 10 points, while Iran sit 3rd, 4 points adrift of the leaders.
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