According to the latest monthly rankings released by the world's soccer governing body on Thursday, Team Melli tallied 865 points and defended the title as the top soccer outfit in Asia.
In another surprise, Argentina are fourth in the rankings despite struggling to qualify for the World Cup after drawing their last two games - away to Uruguay and at home to Venezuela. South Africa are now ranked in 18 place on the continent. In the updated rankings, Northern Ireland have risen three places to 20th.
Wales have climbed from 18th to 13th place in the Federation Internationale de Football Association rankings after their wins over Moldova and Austria to overtake England, who drop two to 15th.
Worldwide, 2014 Fifa World Cup champions Germany displaced Brazil at the helm, the Selecao dropping to second spot.
Nigeria will face Zambia in October in Uyo in their next 2018 World Cup qualifier, and the Super Eagle could secure their World Cup ticket with a victory in the match.
A higher ranking could benefit Wales if they were to qualify from their group in second to reach the play-offs.
Meanwhile, Cape Verde's wins have rocketed them up the table and they are the best movers this month, jumping a whopping 47 places to 67 in the world and 13 in Africa.