They beat pre-tournament favourites Australia 3-1 in their second game but their performance was overshadowed by claims of disharmony in the Socceroos camp.
The Australians, making their first appearance at the tournament after ditching Oceania in search of stiffer competition, were supposed to be the feelgood story of the tournament but failed to live up to their own expectations.
They scraped through to the quarter-finals by finishing second in their group and were bundled out by defending champions Japan on penalties.
Top: Iraqi players celebrate after scoring the third goal