Despite being one of the powerhouses of Olympic wrestling, Iran had never topped the podium in the discipline before Soryan Reihanpour's victory over his Azerbaijani opponent in the 55kg category.
The 26-year-old went into the fight as favourite and gut-wrenched his opponent to win the first period before winning the second 1-0 to seal victory.
Soryan Reihanpour's win, the first Wrestling medal to be handed out at London 2012, means Iran has its first Olympic champion of these Games.
'I am hoping that this will make everyone happy back home,' five-time world champion Soryan Reihanpour said.
'We have got a great people back home who are very kind to our sports people and I am hoping that I brought smiles to their faces for a little time today.'
The defeat was a cruel blow to take for silver medallist Bayramov, who lost to Russia's Nazyr Mankiev in the final in Beijing four years ago.
Earlier in the evening, Hungary's Peter Modos and Mingiyan Semenov both won bronze medals after their respective wins over Dane Erik Haakan Nyblom and Choi Gyujin in the repechage.
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