Iranians lost 3-1 (25-19, 25-17, 23-25, 25-22) to Japan who had lost 3-2 to Italy in its first match.
Iran managed two losses out of two matches. The team was beaten by Algeria in the opening.
Iran is scheduled to meet Thailand on Monday. On June 4, Iran is to play Argentina and the Persians meet giants Italy on June 6.
Iran will finally face South Korea and Australia on June 7-8 respectively.
The winner of this event will be heading to Beijing and the best Asian team also book a berth in the Olympic games.