In what was the final first-round fixture at this summer’s European Championships, Fernando Santos’ side controlled the first half and deservedly took the lead through former Manchester United winger Nani on 31 minutes.
But the Portuguese were unable to push on, and they were pegged back when Birkir Bjarnason emphatically volleyed in Icelanders level five minutes after the interval.
Iceland then produced a resolute defensive display as Portugal captain Cristiano Ronaldo failed to inspire his nation to victory in their Group F opener.
Portugal now head to Paris where they take on Austria on Saturday while Iceland, buoyed by their positive result, take on Hungary in Marseille.
Group F
| Teams | P | W | D | L | F | A | +/- | Pts | |
|---|---|---|---|---|---|---|---|---|---|
| 1 |  Hungary |
1 | 1 | 0 | 0 | 2 | 0 | 2 | 3 |
| 2 |  Iceland |
1 | 0 | 1 | 0 | 1 | 1 | 0 | 1 |
| 3 |  Portugal |
1 | 0 | 1 | 0 | 1 | 1 | 0 | 1 |
| 4 |  Austria |
1 | 0 | 0 | 1 | 0 | 2 | -2 | 0 |
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