This group hails from Yugakure and takes on the job of transporting a scroll packed with classified information. The village's leaders were aware that someone on the team had turned, yet could not identify the culprit, so they issued a decoy scroll to one member as a way to throw any traitors off the trail.
Team Minato drew the assignment of guarding the couriers along their route, operating under the belief that Iwato alone held the real scroll and was therefore the person to protect. The betrayers turn out to be Inagi and Babu, who slay Iwato only to discover his scroll was the empty one. They then locate a wounded Shinbu, the true bearer of the sensitive data.

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Iwato lends the squad its name and dies believing he carried the crucial document. Inagi manages to snatch the genuine scroll, but Kakashi Hatake and Minato Namikaze cut down both traitors and their helpers, restoring the data to Shinbu, who goes on to see the mission through to a successful end.
Team Iwato is a squad from Yugakure, the Hidden Hot Water Village. The group is tasked with transporting a scroll packed with classified information.
Yugakure's leaders knew a traitor was hiding within Team Iwato but could not identify who it was, so they gave a decoy scroll to one member to mislead any betrayer on the team.
Team Iwato was betrayed by its own members Inagi and Babu, who killed Iwato only to discover that the scroll he carried was the empty decoy.
Team Minato was assigned to guard Team Iwato along its route, believing Iwato himself carried the real scroll and needed protection.
Shinbu was the true bearer of the sensitive scroll. Kakashi Hatake and Minato Namikaze cut down the traitors and their helpers, and Shinbu went on to complete the mission successfully.
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