Any decent oil will take 300F or better (the Z will go into limp mode before you get that hot). A short period (2-5 minutes) at 260 shouldn't be a big deal but I'd still change the oil/filter just to be on the safe side. YMMV
Check your coolant level and condition. You may have boiled off some coolant. If the oil temp was that high, the coolant temp was probably above normal also.
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