The Rio 2016 Olympian took 20 seconds off the old record, held by Kenya's Joyciline Jepkosgei, in a time of one hour, four minutes 31 seconds.
It was one minute 15 seconds better than the 28-year-old's previous personal best, set in 2018.
Yeshaneh said after the race: "I didn't imagine this result, I am a world record holder!"
The record is subject to World Athletics' ratification processes.
The women's race was under world record pace throughout, and the top eight women all finished inside 1:07.
However, the men's race did not threaten any records. Kibiwott Kandie of Kenya won in 58 minutes 18 seconds.