Okay, listen.
You haven't had symptoms of herpes. You had a blister that disappeared within 24 hours - that doesn't happen with herpes. Ever. Not ever.
You have some burning and tingling and such. This can be caused with herpes after you have an outbreak. NOT without one. You haven't had one.
Your doctor diagnosed you with balanitis. He saw it. I didn't see it, and I'm not a doctor, but I thought balanitis quite a few times reading your symptoms. It wouldn't cause the burning and tingling, but it could cause some of your other symptoms.
You were NOT AT RISK for herpes from the encounter you describe. You couldn't have gotten it. Plain and simple. You are not listening to me on that. Here are some threads from our experts (when we had them) that may help. Please read them thoroughly. Read them again.
https://
www.medhelp.org/posts/STDs/Nervous-about-mutual-masturbation/show/2183476
https://
www.medhelp.org/posts/STDs/Mutual-Masturbation-STD/show/1968429
https://
www.medhelp.org/posts/STDs/mutual-masturbation-sti/show/1858544
https://
www.medhelp.org/posts/STDs/Understanding-the-risks-of-mutual-fingering/show/1516796
https://
www.medhelp.org/posts/HIV---Prevention/Vaginal-fluid-on-hand-touched-inside-of-condom-and-head-of-penis/show/1119533 - read this thread thoroughly. There is an excellent explanation about why certain activities are not risks, and why others are.
Scabies? I doubt it, but read this and see what you think - https://www.webmd.com/skin-problems-and-treatments/ss/slideshow-scabies-overview
If I had hsv1 (I don't, but do have hsv2), I would tell my partners. I would tell them as part of an overall discussion of STDs. Since you could transmit that during oral sex, it's a courtesy to explain that. If your partner already has hsv1, you don't have to worry about that, though I would avoid kissing and oral sex when you have any symptoms orally.
I tell all my partners about my hsv2. I've never had anyone turn me down. I've even tried using it as a deterrent - like, no dude, you don't want me, I have herpes - and that didn't work. A few have even told me they have it, too.
Towels - because they may be damp, they may have virus on them. It's a theory, and I haven't heard of any cases where that's actually transmitted herpes. I think sharing towels isn't a good idea - you can spread other things that way, so sharing towels isn't smart.
Please continue to work with your doctor about your symptoms. They are NOT related to herpes. Perhaps you have a pinched nerve, or something, but it's not herpes. You do yourself a disservice by not exploring things other than herpes.
I'm not sure why you are so anxious about this encounter - if you feel guilt, have a germ fear, or what - but guilt and/or anxiety does not equal risk.
Talk to your doctor about anxiety. You skip right over that every time I say it, and don't think I haven't noticed that. Talk to your doctor about it.