Mount the ISO:

sudo mount -t udf -o loop,ro,unhide /path/to/file.iso /mnt

Insert the USB drive.

Run fdisk and specify the device name of the USB drive; for example:

sudo fdisk /dev/sdc

Create a FAT-32 file system in the new partition; for example:

sudo mkfs.vfat -F 32 /dev/sdc1

Mount this partition to an existing subdirectory; for example:

sudo mount /dev/sdc1 /media/usbstick

Copy all of the files from the mounted ISO into this directory:

sudo cp -rv /mnt/* /media/usbstick

Sync the file systems just to be sure:

sudo sync

Unmount both items previously mounted:

sudo umount /media/usbstick
sudo umount /mnt