Brother-in-law confessed his feelings for me. How do I handle this?!!

Sorry for the long post. I'm just so shocked and don't know what to do!

Tonight, my husband and I were hosting a dinner with his whole family.....everyone except for his brother. He hadnt given a reason as to why he wasn't coming. Just said he couldn't make it.

Shortly after dinner, while we're all just hanging out, I get a phone call from his brother. Which itself is weird, because he and I don't text/call each other. The only reason I even have his number is from a family group text a while back. Anyways. He starts going on saying the real reason he wasn't here is because he has feelings for me. He said he's been able to ignore them for years, but last night he had a dream about me (of a sexual nature) and now he's having a hard time with it. He didn't feel like he could see me today after that.

I am totally thrown off by this because he has never shown that sort of interest in me, nor have I shown him any. I am completely happy with and in love with the life I have with my husband. I in no way want his brother. He's married too. His wife is a total psychotic bitch and he's only still with her for the kids, so maybe that has something to do with this? I don't know.

When I got the phone call, my husband saw and was standing near by while I was on the phone. I was pretty quiet and giving short responses on the phone, mostly from shock, but also trying not to make a scene. My husband starts asking why his brother was calling me, because obviously it's weird since he's never called before. I tell him we'll talk about it later, basically telling him to drop it. I didn't want the rest of the family hearing. At that point, he's pressing even more because I'm acting super weird and he sees that and he's concerned and thinks something is wrong. I tell him his brother was just apologizing and explaining why didn't make it (not a total lie, he told me why he didn't come and he apologized for putting me in this position).

I just had to tell him something to get him to stop pressing the matter while the whole family was sitting across the room. Now most everyone is gone and I'm going to have to tell my husband what happened. Obviously this is going to put a strain on their relationship, but they are super close. I don't want this completely ruining their relationship or getting the whole family involved and causing issues with everyone else. On the other hand, I don't know how I feel about seeing his brother at family gatherings knowing he has these feelings and has had sexual thoughts about me.

How do I go about this??? My husband trusts me completely, but I'm also concerned he might thing I lead his brother on for some reason.

My husband is exhausted and about ready to pass out, so I maybe it would be best to tell him tomorrow? Or should I do it tonight?

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Am update has been posted. About 25ish posts up from this one.