Yes, he was WWF champion, but for only four weeks. Losing the title to a douche like Hulk Hogan doesn’t help Iron Sheik’s chances against Iron Man. If Tony Stark was stupid enough to remove the armor and wrestle the Sheik, that could lead to trouble. Stark’s too smart, so Sheik would only have the Boston Crab, the Camel Clutch and the Iranian Drop to help him against Iron Man level weaponry. Granted, Nikolai Volkoff and Classy Freddie Blassie would have the Sheik’s back, but still, if they couldn’t stop Sgt. Slaughter, how could they stop Iron Man?
Decision: Iron Man