Team Melli, who started the campaign with a 41-26 loss in Group A to Kazakhstan, was defeated against Australia 29-14 at the Yatsushiro Gymnasium in Yatsushiro, Japan.
Iran will play Japan and New Zealand on Tuesday and Wednesday respectively.
Group B consists of South Korea, China, India, Hong Kong and Singapore.
The 2018 Asian Women’s Handball Championship is the 17th edition of the Asian Women’s Handball Championship, is being held from 30 November to 9 December 2018 in Kumamoto, Yamaga and Yatsushiro, Japan.
The tournament is held under the aegis of Asian Handball Federation and will act as the Asian qualifying tournament for the 2019 World Women’s Handball Championship.