Paraguay produced one of the biggest upsets in FIFA World Cup history on Monday, eliminating four-time champions Germany on penalties after a hard-fought 1-1 draw in their Round of 32 clash.

The South Americans held their nerve in the shootout to claim a 4-3 victory after extra time failed to separate both sides, sending Germany crashing out of the tournament far earlier than expected.

Germany, ranked 10th in the world heading into the competition, struggled to impose themselves for much of the contest and fell behind just before the interval when Julio Enciso rose to head home a cross from Matias Galarza in the 42nd minute.

The four-time world champions responded after the restart as Kai Havertz restored parity eight minutes into the second half, directing a glancing header into the net from Florian Wirtz’s delivery.

Germany believed they had completed the turnaround when Jonathan Tah headed home from a corner, but the effort was ruled out following a VAR review for a foul on Paraguay’s goalkeeper.

With neither side able to find a winner in regulation or extra time, the contest was decided from the penalty spot.

Germany’s hopes suffered an early setback when Havertz missed the opening penalty. Nick Woltemade and Tah also failed to convert, while Paraguay overcame two misses of their own before Jose Canale calmly dispatched the decisive kick to seal a memorable victory.

The result marked Germany’s first-ever defeat in a World Cup penalty shootout and extended their recent struggles at the global showpiece. Since lifting the trophy in 2014, the European giants have repeatedly failed to make deep runs in the competition.

Ranked 41st in the world before the tournament, Paraguay’s victory will rank among the greatest shocks in World Cup history and is widely regarded as one of the biggest knockout-stage upsets the competition has witnessed.

The previous benchmark for a major World Cup upset involving Germany came at the 1994 tournament in the United States, where defending champions Germany were eliminated by Bulgaria in the quarter-finals.

Paraguay will now face either France or Sweden in the Round of 16 in Philadelphia on July 4 as they continue their remarkable World Cup campaign.

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