Iran lost to Russia 4-3 in Group B on Thursday in Dubai's Kite Beach. Amirhossein Akbari, Mohammadali Mokhtari and Mohammad Moradi scored for Iran.
Russia will play Portugal in another semifinal match.
Iran defeated Paraguay 8-6 in their opening match on Tuesday. Mehdi Shirmohammadi, Mohammadali Mokhtari and Mohammad Moradi scored two goals each. Mostafa Kiani and Amirhossein Akbari also were on target.
Iran faced Japan for their second match at the 2021 Intercontinental Beach Soccer Cup on Wednesday and defeated their east Asian opponent 6-1.
The UAE city of Dubai hosts the annual tournament.
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