Universidad Chile dropped points for the first time this season and Santiago Wanderers closed the gap on the league leader.
Santiago Wanderers is within a point of top spot in the Chilean Primera Division after its 1-0 win at Universidad Catolica.
Universidad Chile had claimed four straight wins to start the Apertura campaign, but was held to a 2-2 draw at Deportes Iquique.
Martin Lasarte's table topper carried momentum and confidence into the clash at the Estadio Elias Figueroa Brander, taking a third-minute lead.
A turnover of possession around halfway led to Ramon Fernandez finding the bottom corner with a dipping 30-yard effort.
The host levelled in the 18th minute through Rafael Caroca, who directed a header past Johnny Herrera and into the corner.
Deportes Iquique was awarded a penalty on the hour-mark and took advantage as Rodrigo Diaz tucked his spot-kick into the bottom corner.
Universidad Chile had hit the post moments before equalising in the 75th minute, when Gustavo Canales headed in a corner to earn his side a point.
Santiago Wanderers capitalised by grabbing its fourth win in five games, edging Universidad Catolica.
Jorge Luna scored the game's only goal five minutes before half-time.
Colo Colo, Huachipato and O'Higgins are all within striking distance in the table, sitting three points adrift of top spot.
Esteban Paredes and Luis Pavez struck in the final five minutes to lead Colo Colo to a 2-0 win at home to Union Espanola.
Lucas Simon's brace saw Huachipato past Palestino 2-0 and Octavio Rivero's double led O'Higgins to a 4-1 win over Cobreloa.
Cobresal came from behind to draw 2-2 at Audax Italiano and Gabriel Vargas struck a hat-trick in Universidad Concepcion's 3-2 win over Barnechea.
Union La Calera overcame Nublense 3-2 and Renato Gonzalez's late goal guided San Marcos to a 1-0 win over Antofagasta.