Argentina, playing in their first Olympic Games, matched the Scandinavians for the majority of the opening period, with three late goals at the end of the first half pulling Iceland back to 15-14 after they had looked to assert their authority at 15-11 up.
It remained a close game after the interval as well, with Argentina continuing to hold their own, but Iceland were inspired by the nine goals of Gudjon Valur Sigurdsson and eventually broke clear to win by a six-goal margin, 31-25.
Diego Esteban Simonet threw in five for Argentina as they left their Handball colleagues in no doubt of their talent ahead of a clash with Great Britain on Thursday afternoon.
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