PHOTOS: Croatia sink brave Iceland

IMAGE: Milan Badelj scores for Croatic in the World Cup Group D match against Iceland, at Rostov Arena, Rostov-on-Don, on Tuesday. Photograph: Grigory Dukor/Reuters

Iceland's first World Cup adventure came to a valiant end on Tuesday as they were beaten 2-1 by Group D winners Croatia due to a late strike from Ivan Perisic, with Argentina qualifying as runners-up instead.

Iceland missed a flurry of early chances but went behind in the second half to a lethal strike from Croatia midfielder Milan Badelj, although Gylfi Sigurdsson levelled from the penalty spot in the 76th minute to set up an enthralling finish.

IMAGE: Gylfi Sigurdsson scores for Iceland from the penalty spot. Photograph: Grigory Dukor/Reuters

Argentina's 2-1 win over Nigeria meant Iceland would have qualified with a victory but instead their hearts sank when Perisic smashed into the far corner in the 90th minute.

IMAGE: Ivan Perisic celebrates scoring Croatia’s second goal. Photograph: Albert Gea/Reuters

Croatia will meet Denmark in the last 16 while Argentina play France.

Iceland, the smallest ever nation to compete at a World Cup, are heading home with one point from their tournament debut but will still leave Russia with their heads held high.