The national Iranian beach soccer team had previously defeated Paraguay and the U.S. in Group B.
Mehdi Shirmohammadi, Mohammad Movahedpour and Hamid Behzadpour scored in regular time and Amirhossein Akbari scored the winner in the extra time.
Iran will play the UAE on Saturday in the semis.
Russia is the most successful team, having won four tournaments.
Iran has won the title three times.