(Reuters) -U.S. crude futures fell on Tuesday to their lowest level in more than a week as U.S. President Donald Trump said a ceasefire has been agreed between Iran and Israel, relieving worries of supply disruption in the area.

Oil futures declined and U.S. stock indexes rose despite fears Iran will close the Strait of Hormuz, a key waterway for transporting oil around the world.

Oil futures are selling off following Iran's missile attack on a U.S. military base in Qatar, with benchmark U.S. prices falling by as much as 5% in afternoon trading. The sharp decline is a sign that traders believe that Iran's retaliation for the U.