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Many applications that can be used with ZIP files can also be used with ISO files, so you may already have such an application available. Your application might use the word decompress rather than extract or unzip, but the result is the same. You need additional software to extract an ISO file.
I know that ISO files follow ISO-9660, the ISO in which stands for International Standards Organisation, but a lot of file formats will presumably follow some ISO standard, so that seems incorrect. I couldn't find any answers to this on Wiki / Google. My best guess so far is: Image Standard Optical.