
The moment the final whistle was blown, fans surged in their thousands from cafes and other TV viewing points out onto the streets in extraordinary scenes of jubilation right across the nation.
Al Jazeera broadcaster said many, including members of the security forces, defied a strict government ceasefire with a barrage of gunfire to celebrate the victory in traditional Iraqi manner.
Cars were also taken to Baghdad's streets, their horns honking, despite a ban on use of vehicles which went into effect two hours before the kick-off. In addition, overnight curfews had been ordered in the especially troubled city of Karbala and also in Mosul.
Football fans right across nation had been gathered before television sets in a show of unity, and the surge of joy at victory was immediate.
It also left security authorities with serious worries over bombings and major disruptions of public order, including the tradition of firing live rounds into the air.
Authorities had urged fans not to congregate in vary large groups in another move to avoid creating bomb targets amid fears of extremists eager to use the event to cause maximum harm.
Younis Mahmoud, 24-year-old captain of the giant-killers who had already disposed of tournament favourites Australia and South Korea, assured himself of a place in the country's sporting history with his headed winner in Jakarta's Gelora Bung Karno Stadium.
Khalef headed home a corner kick in the 72nd minute. Iraq had never made the final four before in the Asian tournament, while Saudi Arabia were bidding for an unprecedented fourth Asian Cup title.
The young Iraqi team under Brazilian coach Jorvan Vieira already caused major upsets by beating favourites Australia, and then South Korea in a mid-week semi-final - a result that sent the homeland erupting in traditional shooting sprees of celebration that turned tragic with 50 killed in ensuing bomb attacks.
The team includes Sunni and Shiite Muslims, offering the country a rare opportunity to return to the days when it would have been celebrating with one voice.
Stores across the country have meanwhile been doing a brisk trade in national flags, baseball caps and T-shirts, while fans have been buying up fuel to ensure generators keeping TVs running.
DPA