["The World Economy, EarlyView. ", "\nABSTRACT\nUsing Iranian household microdata and welfare metrics grounded in consumer theory, we show that the 2012 SWIFT sanctions inflicted unequal welfare losses. Poorer households lost 2.3–2.8 times more than wealthier ones (quartile comparison) in terms of pre‐sanctions real expenditure. Public‐sector households needed 35%–41% more compensation than private‐sector peers; manufacturing/services households needed 37%–42% more than agriculture/construction households. Financial sanctions hurt the poor most, reversing oil sanctions predictions.\n"]