** Indian stock benchmarks Nifty 50 .NSEI and Sensex .BSESN fall 0.4% each as oil prices LCOc1 surge to $85 a barrel

** Crude jumps after U.S. President Donald Trump says Washington is reinstating its blockade of Iranian shipping in the Gulf and will collect a 20% fee on cargo passing through the Strait of Hormuz

** Twelve of the 16 major sectors decline; small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fall 0.7% and 0.2%, respectively

** Financials .NIFTYFIN, banks .NSEBANK dip 0.9% each; auto index .NIFTYAUTO slips 1.4%

** Other Asian markets also fall after Trump's Hormuz levy threat

** "If crude spike continues, it will start impacting India's macros, while the spike in U.S. 10-year yield is another concern," says VK Vijayakumar, chief investment strategist at Geojit Investments

** Among stocks, HCLTech HCLT.NS falls 3.1% as unchanged FY2027 outlook spurs worries of demand uncertainty

** Bucking the trend, Biocon BION.NS jumps 7.4% after block deal

** Mylan Inc, part of healthcare firm Viatris VTRS.O, planned to sell up to 92 million shares, worth $362.1 million, according to a term sheet seen by Reuters

** Nuvoco Vistas NUVO.NS gains 7.5% on higher June-quarter profit