England's dominated what was a largely meaningless game in an empty Wembley Stadium, but didn't score again until Iceland was reduced to 10 men.
After Axel Witsel's equalizer, Belgium took the lead in the 17th through Batshuayi, who slotted the ball home from the rebound.
According to Icelandic media reports, an Australian tourist who was confirmed to have the virus died early last week.
The man, who tested positive for the virus had recently visited northern Italy but had been outside the designated risk areas.
France coach Didier Deschamps fielded six of the players that began the World Cup final against Croatia, handing in-form Marseille winger Florian Thauvin his first start
Marcos Rojo's late winner against Nigeria salvaged Argentina's World Cup hopes and set up a heavyweight last-16 showdown against France.
Croatia were already through to the last 16 and coach Zlatko Dalic rested most of the side that thumped Argentina 3-0.
The 25-year-old is now the first Nigerian to score at different World Cups and with four goals the country's all-time record scorer in the finals.
FIFA World Cup 2018: Lionel Messi-led Argentina's hopes of reaching knockouts lifted after Nigeria beats Iceland 2-0
Iceland's defeat was a boost for Lionel Messi's Argentina, who are now back in the mix in Group D and need to beat Nigeria on Tuesday to qualify for the last 16.
Argentina needs to beat Croatia to clear its path from the three-game group stage to the knock-out round of 16.
Mercado said coach Jorge Sampaoli's squad is convinced about what's ahead, referring to the match with Group D leader Croatia.
"Playing like that, he can't come back to Argentina," the 1986 World Cup winner told Venezuelan television after Lionel Messi missed a penalty in the 1-1 Group D stalemate in Moscow.
FIFA World Cup 2018: Iceland boss Heimir Hallgrimsson hails 'schoolbook' defending against Lionel Messi's Argentina
The island nation of 330,000 is the smallest ever to qualify for the World Cup finals but emphatically showed again they can mix it with the heavyweights of the game.
Halldorsson's save prevented a second Argentine goal and was the key player in Saturday's World Cup Group D match, which ended in a 1-1 draw.
Messi denied that the draw would affect the team in its next Group D contest Thursday against Croatia, adding that 'we have some days to rest and get well-prepared for the match.'