The Iranian team beat the European team 75-59 in Group A and finished in second place behind China.
Dirk Bauermann's men will play USA on Friday.
The tournament has brought a total of eight teams together in Suzhou, China, from July 27 to August 1.
Iran is preparing for the 2015 FIBA Asia Championship which will be held in Wuhan, China, from September 23 to October 3.