We have to learn and keep moving forward: Guardiola after World Cup loss to Al Hilal
Al Hilal, who recorded one of the greatest results in Middle Eastern football history, will face Fluminense in Orlando on Friday in the quarter-finals.
City were the only side to win all three group matches, including a thrashing of Juventus, but came undone in Florida against an Al Hilal side filled with players who once starred for European teams.
Guardiola's team were the defending champions, having won the trophy in 2024 in its previous format, but were matched blow-for-blow by Al Hilal at the Camping World Stadium.
Former Inter coach Simone Inzaghi's side showed their quality in the group stage as they held Spanish giants Real Madrid to a draw, but few expected they could derail City's charge towards the trophy.
"We knew that it was a difficult game against one of the best teams in the world -- we wanted to show our ideas, our talents, our power," Al Hilal's Kalidou Koulibaly told DAZN.
Bernardo Silva turned home from close range to put City ahead after nine minutes on a muggy night on the east coast, but Leonardo levelled early in the second half.
Former Barcelona winger Malcom fired the Saudi side ahead after Joao Cancelo threaded him through on goal.
Erling Haaland levelled for City and had an effort cleared off the line late on before the game went to extra-time.
Koulibaly nodded home from a corner after 94 minutes but Phil Foden finished well to level 10 minutes later.
The match was decided by Leonardo reacting well to prod home when Ederson saved Sergej Milinkovic-Savic's header after 112 minutes, with City unable to battle back a third time.
"Unfortunately we can't continue in the competition so we have to learn and keep moving forward," Guardiola told reporters.
"Al Hilal don't just run, they have a lot of quality, we created a lot with wingers but they are a complete team...
"I have a big, big opinion of Al Hilal but I (also) think we had a good game to be honest."
Inter ousted
Elsewhere Monday, German Cano headed home early on to give Fluminense the lead against Inter Milan and the Brazilian side survived an onslaught from the Serie A team to progress.
Substitute Hercules netted late on to seal their win, while a frustrated Inter hit the woodwork twice through Lautaro Martinez and Federico Dimarco.
The Rio de Janeiro outfit become the second Brazilian side to make the last eight after Palmeiras had already sealed their quarter-final spot.
"We knew they were not going to be easy opponents. Less than a month ago they were playing the Champions League final, but we played really well," said 40-year-old 'Flu' captain Thiago Silva, once of Paris Saint-Germain and Chelsea.
It is the latest victory for a Brazilian team against prestigious European opposition at the tournament in the United States, after Botafogo defeated PSG and Flamengo got the better of Chelsea in the group stage.
"This is a very important victory for our fans, for all of Brazil, for my country, for South America," said Jhon Arias, the lively Colombian winger who was named man of the match.
Inter, who were thrashed 5-0 by PSG in the Champions League final, appointed Cristian Chivu to replace the departing Inzaghi ahead of the tournament.
They did not fully convince during the group stage despite topping their section and a furious Martinez criticised some of his team-mates after the game.
"I want to fight for the major trophies, (so) anyone who wants to stay at Inter, fine, let's fight, but anyone who doesn't want to stay can leave," said Inter's captain.
"We need players who want to be here. We're wearing an important shirt... we need a top-level mentality, or please leave."
Find more details on group standings, match schedules, and competition statistics
(For more sports news and updates, follow Ahram Online Sports on Twitter at @AO_Sports and on Facebook at AhramOnlineSports.)
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