NUREMBERG, June 12 - This was by far the best Iranian performance at a World Cup but there will be no celebrations in the streets of Tehran after the Islamic Republic lost to Mexico 3-1 on Sunday.

Despite putting up a proud display for more than an hour, Iran conceded two goals in three minutes late in the second half to destroy what they had built up in their Group D opener.

They are now with their backs against the wall, needing a win against Portugal, winners over Angola, in their next match on Saturday to keep qualification hopes alive.

Portugal have said they also want to beat Iran, so they can head to the second stage without having to fight it out against tough Mexico on the last match.

"This is a World Cup. Anything is possible," their coach Branko Ivankovic said after the match. But it seemed he was saying it for his players to hear rather than to the media.

Hailed by Ivankovic as the best Iranian football team ever, the players, many of them active in the German Bundesliga, did live up to their reputation until halfway through the second half.

BLOCK ATTACKS

Mexico had taken the lead in the 28th minute with an Omar Bravo header but Iran levelled eight minutes later through Yahya Golmohammadi.

While Mexico did take control in the second half, Iran were able to block the attacks before they reached their keeper Ebrahim Mirzapour.

The Mexicans hardly had a scoring chance until the 76th minute when Bravo scored his second after a defensive mix-up. Three minutes later substitute Zinha headed home the third to put the game beyond Iran's reach.

"You can't make such mistakes at the World Cup," Iran captain Ali Daei complained. "Now it is going to be hard for us to qualify but we will try."

Ivankovic said his players, especially the German-based, would need to lift their game if they wanted to qualify for the second round.

Mehdi Mahdavikia was at times left isolated trying to move forward from the right.

"The players were not satisfied with the result. Now we have to prepare ourselves mentally against Portugal," Ivankovic said.

"Portugal have excellent players but it is a World Cup and we will have to push hard," he said.