Iran's Supreme Leader Mojtaba Khamenei directed his negotiators to pursue a deal with the United States for the first time since the war began, a key breakthrough that helped lead to a two-week ceasefire, according to a new report.

U.S. and Israeli officials learned of Khamenei's directive on Monday as President Donald Trump warned of potential annihilation, even as negotiators quietly gained momentum toward a ceasefire, reported Axios on Wednesday, quoting inside sources.

The breakthrough came during a frantic stretch of diplomacy in which U.S., Iranian, and regional officials raced to avoid a widening conflict and as the Pentagon prepared for possible large-scale strikes on Iranian infrastructure, and allies braced for retaliation.

U.S. forces in the Middle East spent the final hours preparing for a potential bombing campaign, while officials in Washington tried to determine how far Trump was willing to go.

"We had no idea what was going to happen. It was wild," a defense official said.

Allies across the region were preparing for the possibility of unprecedented Iranian retaliation, while some civilians inside Iran fled their homes amid fears of imminent strikes.

The ceasefire followed a day of intense and often chaotic negotiations. U.S. envoy Steve Witkoff, described by a source as "very angry," rejected an initial 10-point Iranian counterproposal as "a disaster, a catastrophe."

Pakistani mediators shuttled revised drafts between Witkoff and Iranian Foreign Minister Abbas Araghchi, while Egyptian and Turkish officials worked to narrow differences.

By Monday night, mediators secured U.S. approval for a revised proposal outlining a two-week ceasefire.

The final decision rested with Khamenei, who was said to be directly involved in deliberations despite operating under the threat of assassination.

Sources said Khamenei has been communicating through intermediaries passing written messages, complicating the process.

Two sources described his approval for negotiators to pursue a deal as a "breakthrough."

Araghchi played a key role in advancing the talks and persuading Iran's Revolutionary Guards leadership to accept the proposal, according to a regional official. China also encouraged Iran to pursue a diplomatic resolution.

"Without his green light, there wouldn't have been a deal," the regional source said.

Despite public reports suggesting Iran might abandon negotiations, sources involved said discussions continued and gained momentum into Tuesday.

Vice President JD Vance worked with Pakistani intermediaries from Hungary, while Israeli Prime Minister Benjamin Netanyahu remained in close contact with Trump and his team.

Israeli officials grew increasingly concerned they were losing influence over the process, but by midday on Tuesday, officials from multiple parties indicated they were converging on terms for a temporary ceasefire.

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