Iran had lost to Saudi Arabia 32-28 on Saturday.
The team will meet Kuwait in its last Group A match on Wednesday.
Group B consists of Bahrain, India, Japan and Pakistan.
The 2022 Asian Men's Junior Handball Championship is being held in Manama, Bahrain under the aegis of Asian Handball Federation (AHF).
It also acts as a qualification tournament for the 2023 Men's Junior World Handball Championship, with top four teams from the championship directly qualifying for the event to be jointly hosted by Germany and Greece.