Football: Free Fall of Slovenia
After their fourth loss from five matches, Slovenia are at the bottom of the group E standings along with Cyprus, which have a match in hand.
Slovenia went into the lead in the 34th minute through veteran striker Milivoje Novaković, but saw Iceland score twice through Gylfi Sigurdsson in the second half.
Slovenia will play their next qualifier on 7 June, when they will travel to Iceland.