The result signaled a first defeat for Iran in the Games after two wins against Poland and Venezuela.
Perrin John Gordon scored 16 points for Canada while Amir Ghafour pocketed 13 points for Iran.
Iran will play Italy on Friday.
The 12 men’s teams are divided into two pools of six teams. Each team will play against the five other teams in the same pool in a single round robin system.
Then the top four teams from each pool will advance to the next phase playing in a knockout system in the quarterfinal, semifinal and final rounds.
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