Iran says it cannot afford to shut down its sanctions-hit economy, even as the Middle East's deadliest coronavirus outbreak worsens with record-high death tolls and rising infections.

Iran must continue “economic, social and cultural activities while observing health protocols”, President Hassan Rouhani said during a televised virus taskforce meeting.

“The simplest solution is to close down all activities, [but] the next day, people would come out to protest the [resulting] chaos, hunger, hardship and pressure,” he added.

The Islamic republic has been struggling since late February to contain the country's Covid-19 outbreak, which has killed over 12,400 people and infected more than 252,000.