The young Persians lost to Italy 3-1 (25-16, 26-28, 26-24, 25-17) in Pool C on Tuesday and finished in fourth place.
Mohammad Amin Rahimi scored 19 points for Iran and Manuel Hristov Zlatanov collected 15 points for the Italian team.
Iran will meet Pakistan in Round of 16 on Wednesday.
It is being held in Tashkent, Uzbekistan, from July 24 to August 3.