President Donald Trump on Wednesday defended a newly unveiled framework agreement with Iran that aims to end months of conflict and reopen critical shipping lanes in the Middle East.

The proposed 14-point memorandum of understanding, expected to be formally signed later this week in Switzerland, would extend the current ceasefire for 60 days while negotiators work toward a broader and more permanent agreement.

At the center of the deal is the reopening of the Strait of Hormuz, a vital energy corridor through which roughly one-fifth of the world's oil and gas supplies pass. The agreement calls for an end to maritime blockades in the Persian Gulf and the restoration of commercial shipping traffic.

Under the framework, Iran has pledged not to pursue nuclear weapons and to begin technical negotiations over its stockpile of enriched uranium. In return, the U.S. would ease some sanctions, release access to frozen Iranian assets and support outside investment in Iran's economy.

A proposed $300 billion reconstruction and development fund has emerged as one of the deal's most controversial elements. Trump has rejected reports that the U.S. would finance the fund, insisting that any investment would come from regional partners and private sources, according to the New York Times.

Speaking at the Group of Seven summit in France, Trump argued the agreement prevented a broader economic crisis driven by surging energy prices and supply chain disruptions.

"I didn't want to see an economic catastrophe," he said, according to the Wall Street Journal.

However, critics in Congress and within Trump's own party have demanded more details, arguing the framework leaves unresolved questions about Iran's ballistic missile program and long-term compliance mechanisms.

Whether the agreement evolves into a lasting peace accord may depend on the next 60 days of negotiations.

Various oil stocks, including Chevron Corp (CVX) and ExxonMobil Corp. (XOM) have barely moved in after-hours trading after the announcements.