In graduate school I had something like this happen as well - and it got so bad that I couldn't even scratch myself without breaking out in terrible red welts that itched to the bone. Most fabrics were irritating as well, and I do have asthma and allergies.
Sadly the only thing that helped was time, my doctor thought that my stress levels were adding to my skin sensitivity. She tried me on several allergy medications, but nothing helped much - eventually the problem rectified itself. I do think the combination of asthma and allergies can cause hyper skin sensitivity in times of stress, and the dry skin in winter doesn't help...so hopefully this isn't about your wool at all.
Have you tried an intensive lotion or cream? I have found at such times that this can be temporarily helpful, but of course there are so many out there that just don't help the problem even if they are marketed for "extra dry skin".




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. I got sick of that and tested myself during the Passover seder one year and since I had no reaction, that was the end of it. 