The BJ's shouldn't be touching at rest at all, about 1/4" clearance is what I'd call a minimum, more is better. Those wheels must be non stock and have a width or offset that has placed the wheel and tire much further inward.
You can't drive that much distance at all, it will blow the tire, that's the metal outer surface of the upper BJ. The tire flexes inward during cornering, there has to be a decent gap between the BJ and tire, at rest.
It also looks like the BJ's are very old, cracking and maybe soon losing grease. When you next get a chance, I'd have all of the BJ's checked for wear, and be prepared to need to replace some of them soon.
The factory 16" tires were 255/70/16's, which are 30" tall. That 265/70 is 1/2" taller, 30.5", that isn't too big at all, but the speedometer is reading slightly slower than accurate, maybe 2-3% off.