The Hoosiers' run pushed their lead to 71-50 with 7:15 to go.
The Hawkeyes went almost eight minutes without scoring, missing nine consecutive shots from the floor.
Juwan Morgan led Indiana (5-4, 1-1 Big Ten) with 15 points and 10 rebounds. De'Ron Davis and Collin Hartman added 13 points each for the Hoosiers.
The Hoosiers outscored the Hawkeyes 15-4 from the free-throw line.
After trailing by 15 at halftime, Iowa made a big run to get back in it.
The Hawkeyes opened the second half with a 16-2 run to cut Indiana's lead to 43-42 four minutes in.
Brady Ellingson scored 16 points to lead Iowa. The junior, who came off the bench, made 6 of 9 shots and was 3 of 4 from beyond the arc.
Neither team led by more than two points for the game's first 14 minutes, but Indiana went on a 14-0 run to take a 34-20 lead with 3:43 to go in the half.
Iowa made six 3-pointers in the opening 20 minutes, but was just 3-for-17 from inside the arc.
The Hoosiers had 14 points off turnovers to the Hawkeyes' five in the first half.
Both teams return to non-conference play this week.
The Hawkeyes (4-5, 0-2), who have lost five of their past six games, play at Iowa State on Thursday, while Indiana will be in Louisville to take on the Cardinals on Sunday.