<jats:title>ABSTRACT</jats:title><jats:p>The pervasive impact of COVID‐19 and economic sanctions has significantly influenced the well‐being of Iranian athletes, leaving lasting imprints on both their physical and mental health. During this challenging time, this comprehensive study delves into the nuanced disparities among various cohorts of Iranian athletes across multiple dimensions, including insomnia severity, psychological distress, anxiety, depression, intrusive thoughts, life satisfaction, and hope. Stratifying the participants based on their professionalism level, age, education, sports activity engagement, and COVID‐19 infection status, our survey‐based findings from a cohort of 280 athletes reveal compelling insights: Male athletes exhibit higher levels of distress, anxiety, and depression compared to their female counterparts. Professional athletes manifest elevated psychological distress, anxiety, and depression in contrast to semi‐professional and amateur athletes. Insomnia severity is more prevalent among professional athletes, concurrently accompanied by higher levels of hope within this group. Young athletes and those with higher educational attainment report increased intrusive thoughts. Local and national athletes demonstrate higher levels of life satisfaction and hope compared to their international counterparts. Athletes not infected with Coronavirus experience heightened psychological distress compared to their COVID‐19‐infected counterparts. This nuanced exploration underscores the intricate interplay between various factors and their profound implications for the mental well‐being of Iranian athletes in the face of global health challenges and economic constraints. By recognizing the vulnerabilities exposed during the pandemic and sanctions, policymakers can work toward a more resilient and robust sports sector, ensuring that the mental health and psychosocial well‐being of athletes remain at the forefront of policy considerations.</jats:p>