The Netherlands were beaten in Iceland to suffer their second defeat in three Euro 2016 qualifiers.
Two goals from Swansea midfielder Gylfi Sigurdsson kept Iceland top of Group A, six points above the Dutch, who came third at the 2014 World Cup in Brazil.
In Wales' Group B, Bosnia-Hercegovina and Belgium drew 1-1, while Omer Damari scored a hat-trick as Israel beat Andorra 4-1.
Southampton's Graziano Pelle scored the only goal as Italy defeated Malta 1-0.
Pelle, 29, was making his debut in a match that saw both sides reduced to 10 men as Malta's Michael Mifsud was sent off after 27 minutes, before Italian Leonardo Bonucci was dismissed with 17 minutes remaining.
It has been a terrible start to the Netherlands' campaign for new boss Guus Hiddink, who took over the national side in the summer after Louis van Gaal left to join Manchester United.
The Dutch lost their first Group A game 2-1 in Czech Republic and needed to come from behind to beat Kazakhstan 3-1 on Friday, before losing in Reykjavik.
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