Despite valiantly defending for more than 80 minutes, the Aussies were unable to stop 24-year-old Real Sociedad winger and Spanish captain Oyarzabal who nodded home the winner with only nine minutes left on the clock.
It was Spain’s first goal of the tournament after sharing the spoils in a 0-0 draw in their opening clash of the Olympic tournament against Group C rivals. Egypt.
Australia was on the back foot for most of the contest with La Roja holding 70% possession in the first half but were unable to capitalise on their dominance.
Spain peppered the Olyroos goal with shots and even hit the crossbar in the 20th minute.
The Aussies were starved of chances, and it wasn’t until the 51st minute of the match when they managed their first of only two attempts on goal.
As the game opened up in the later stages Australia’s ability to hold out a rampant Spanish side waned with shot-stopper Tom Glover keeping a tiring Olyroos side in the match with a pair of saves.
And in the 81st minute, Oyarzabal finally found the breakthrough as he headed home after a deft cross from Real Madrid winger Marco Asensio.
The win moves Spain into the top spot of Group C ahead of their final match of the group stage against Argentina.
Australia is in second place and still in contention to progress to the next round of the tournament but will need to take at least a point from their clash against Egypt on Wednesday night.
