The two teams drew 10-10 at the end of the fourth quarter and it was left to a penalty shootout to decide the match.
Iran won the match 5-4 on penalty shootouts.
Team Melli had defeated Hong Kong 16-2 in their opening match.
Iran will play the Philippines on Friday.
Group A consists of China, Thailand, Uzbekistan and Singapore.
The Championship started on March 22 in Singapore and will run until March 27.
The eight men and four women teams will compete over the course of the next five days to qualify for May’s World Aquatics Water Polo World Cup – Division 2 Qualifier in Berlin. Only the top four men’s and top two women’s teams will make the cut.
MNA
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