Iniesta, who scored an 80th-minute winner against Iceland in Mallorca in March, netted four minutes from time as Spain overcame the early dismissal of midfielder Xabi Alonso to deny Iceland what would have been only their second group win.
Before kick-off there was a minute´s tribute to Antonio Puerta, the Sevilla wing-back who died last week at the age of 22 after suffering a cardiac arrest during a league game against Getafe.
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