Cristiano Ronaldo was unable to deliver his side, after his penalty kick hit the wood-work when he was brought down in the second half by Austria defender Martin Hinteregger in the 18-yard box.
The loss made the scoreline end in a goalless draw, failing to take Portugal to the top and eventually leaving the group open to all the teams ahead of the last group matches.
Portugal are currently third on the table with two points out of two matches but tied on points with Iceland who are second, meaning that Portugal must win her last match against group leaders Hungary.
Hungary have four points from two matches and need a draw to progress to the knockout stage, and this makes situation even worse for Portugal.
If Portugal fails to beat Hungary on June 22, it simply means that they will be out of the tournament, but if eventually they win, they will still have to depend on the result of the match between Iceland and Austria, to know if they will progress to the knockout stage.
Ronaldo’s miss from the spot-kick is coming at a point when he recently helped his club win their eleventh champions league title after scoring the final penalty from the spot kick.