Local authorities late Saturday announced the closure of all primary schools in the province of Tehran, which is home to 14 million residents, except in two towns.
A blanket of smog has covered neighbourhoods in the capital in the past few days.
Airborne concentration of fine particles (PM2.5) hit 185 microgrammes per cubic metre in the south of Tehran and 174 in its centre on Sunday morning, local authorities said.
Authorities also ordered mines and cement factories in Tehran province to close and reinforced regular traffic restrictions in the capital's centre.
In the northwestern cities of Tabriz and Urmia, schools remained closed for the second day straight on Sunday, official news agency IRNA said.
Every year, Tehran suffers some of the worst pollution in the world when cool temperatures cause an effect known as "temperature inversion".
The phenomenon creates a layer of warm air above the city that traps pollution from more than eight million cars and motorbikes.
In 2014, almost 400 people were hospitalised with heart and respiratory problems caused by pollution in Tehran. Nearly 1,500 others required treatment.
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