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Introduction: The issue of welfare and the reduction of poverty and inequality has always been one of the concerns of policy makers in the field of Socioeconomics. As a result, external shocks such as sanctions on household welfare need serious consideration. 
Method: This paper examines the effects of unilateral US sanctions on the welfare of urban and rural households using the matrix multiplication and the calorie intake for different income groups. Then, using its results and raw data of the Households Income and Expenditure Survey, the indicators of headcount poverty rate and Gini coefficient for the period of 2002 to 2018 are calculated. Finally, the effects of sanctions on household welfare are shown based on the theory of “Pareto optimization”. 
Findings: The major findings of the study imply that after the 2010 sanctions, calorie intake had a downward shift from the first decile to the fourth decile. The trend of poverty after 2011 with the intensification of sanctions has shown an increasing pattern. Since 2013, the pattern of income inequality, under the influence of the foreign exchange market and the subsequent return of sanctions, has had a negative effect on the welfare of Iranian households.
Discussion: Achieving economic and welfare goals requires determining the target community for supportive receipts. Deregulation of the business market and convergence between policies and laws are among the most important ways to reduce the negative effects of sanctions on the welfare indicators of Iranian households.

Keywords: Sanctions, Poverty, Income Inequality, Calorie Intake, Household Welfare

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