Iran conceded defeat against Lebanon 64-49 in the semi-finals and failed to qualify for the final of the sporting event.
Previously in the preliminary round, Iran had won against Chinese Taipei, Kyrgyzstan, and Samoa to reach the semi-finals.
The Iranian team will play against Samoa on Sunday for third place, while the Philippines and Lebanon will compete in the final match.
The Philippines, Hong Kong, China, Iran, Kyrgyzstan, Lebanon, the Maldives, Samoa, and Syria are the teams competing in the event for a chance to secure promotion to Division A.
The FIBA U18 Women's Asia Cup Division B is taking place in Shenzhen, China.
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