Business
California gas is pricey already. The Iran war could cost you even more
The U.S. attack on Iran is expected to have an unwelcome impact on California drivers — a jump in gas prices that could be felt at the pump in a week or two.
The outbreak of war in the Middle East, which virtually closed a key Persian Gulf shipping lane, spiked the price of a barrel of Brent crude oil by as much as $10, with prices rising as high as $82.37 on Monday before settling down.
The price of the international standard dictates what motorists pay for gas globally, including in California, with every dollar increase translating to 2.5 cents at the pump, said Severin Borenstein, faculty director of the Energy Institute at UC Berkeley’s Haas School of Business.
That would mean drivers could pay at least 20 cents more per gallon, though how much damage the conflict will do to wallets remains to be seen.
“The real issue though is the oil markets are just guessing right now at what is going to happen. It’s a time of extreme volatility,” Borenstein said. “We don’t know whether the war will widen or end quickly, and all of those things will drive the price of crude.”
President Trump has lauded the reduction of nationwide gas prices as a validation of his economic agenda despite worries about a weak job market and concerns of persistent inflation.
The upheaval in the Middle East could be more acutely felt in the state.
Californians already pay far more for gas than the rest of the country, with the average cost of a gallon of regular at $4.66, up 3 cents from a week ago and 30 cents from a month ago, according to AAA. The current nationwide average is about $3 per gallon.
The disruption in international crude markets also comes as refiners are switching to producing California’s summer-blend gas, which is less volatile during the state’s hot summers. The switch can drive up the price of a gallon of gas at least 15 cents.
The prices in California are largely driven by higher taxes and a cleaner, less polluting blend required year-round by regulators to combat pollution — and it’s long been a hot-button issue.
The politics were only exacerbated by recent refinery closures, including the Phillips 66 refinery in Wilmington in October and the idling and planned closure of the Valero refinery in Benicia, Calif., which reduced refining capacity in the state by about 18%.
California also has seen a steady reduction in its crude oil production, making it more reliant on international imports of oil and gasoline.
In 2024, only 23.3% of the crude oil refined in the state was pumped in California, with 13% from Alaska and 63% from elsewhere in the world, including about 30% from the Middle East, said Jim Stanley, a spokesperson for the Western States Petroleum Assn.
“We could see a supply crunch and real price volatility” if the Middle East supply is interrupted, he said.
The Strait of Hormuz in the Persian Gulf, through which about 20% of the world’s oil passes, was virtually closed Monday, according to reports. Though it produces only about 3% of global oil, Iran has considerable sway over energy markets because it controls the strait.
Also, in response to the U.S. attack, Iran has fired a barrage of missiles at neighboring Persian Gulf states. Saudi Arabia said it intercepted Iranian drones targeting one of its refinery complexes.
California Republicans and the California Fuels & Convenience Alliance, a trade group representing fuel marketers, gas station owners and others, have blamed Gov. Gavin Newsom’s policies for driving up the price of gas.
A landmark climate change law calls for California to become carbon neutral by 2045, and Newsom told regulators in 2021 to stop issuing fracking permits and to phase out oil extraction by 2045. He also signed a bill allowing local governments to block construction of oil and gas wells.
However, last year Newsom changed his stance and signed a bill that will allow up to 2,000 new oil wells per year through 2036 in Kern County despite legal challenges by environmental groups. The county produces about three-fourths of the state’s crude oil.
Borenstein said he didn’t expect that the new state oil production would do much to lower gas prices because it is only marginally cheaper than oil imported by ocean tankers.
Stanley said the aim of the law was to support the Kern County oil industry, which was facing pipeline closures without additional supplies to ship to state refineries.
Statewide, the industry supports more than 535,000 jobs, $166 billion in economic activity and $48 billion in local and state taxes, according to a report last year by the Los Angeles County Economic Development Corp.
Bloomberg News and the Associated Press contributed to this report.
Business
Howard Lutnick Faces Questions From Congress About Epstein Ties
Howard Lutnick, President Trump’s commerce secretary, faced questions on Wednesday in a closed-door session of the House Oversight Committee over his ties to Jeffrey Epstein, the convicted sex offender.
Mr. Lutnick is one of the highest-profile cabinet members to come under scrutiny in connection with Mr. Epstein. The commerce secretary’s name appeared in more than 250 documents in the Epstein files released by the Justice Department, a review by The New York Times found.
Asked whether Mr. Lutnick’s credibility had been undermined, Representative James Comer, a Republican of Kentucky who chairs the House Oversight Committee said Wednesday, “we’re going to ask him all these questions, and we’ll let the American people judge whether the credibility was damaged or not at the end of the day.”
Mr. Comer said that Mr. Lutnick “wasn’t 100 percent truthful with whether he or not he had been on the island.”
He added that it was the first time in the last decade that a chairman of the oversight committee had brought in a cabinet secretary of his own party.
During the hearing Mr. Lutnick downplayed his ties to Mr. Epstein, claiming their relationship was inconsequential, according to two people familiar with his testimony.
Mr. Lutnick lived next door to Mr. Epstein on the Upper East Side of Manhattan for over a decade. Until recently, he had claimed to have not been in the same room with Mr. Epstein after an encounter in 2005. But millions of documents that were released by the Justice Department earlier this year showed that Mr. Lutnick had traveled to Mr. Epstein’s private island in 2012.
The documents suggest Mr. Lutnick had another encounter with Mr. Epstein at his house in 2011, years after Mr. Lutnick claimed to have cut ties with him. The records also indicated that the men invested in the same privately held company together and dealt with each other on neighborhood and philanthropic issues.
Mr. Epstein, who was convicted in Florida in 2008 of soliciting prostitution from a minor, died in a Manhattan jail in 2019 while being held on federal sex-trafficking charges.
Mr. Lutnick has received questions from lawmakers about his connections with Mr. Epstein in congressional hearings on other topics, first in February and again last month.
All Democrats and some Republicans on the Oversight Committee signaled that they would try to force a vote on a subpoena for Mr. Lutnick. But the panel’s Republican chairman, Representative James R. Comer of Kentucky, said that Mr. Lutnick had volunteered to testify.
The Commerce Department said in a statement on Wednesday that Mr. Lutnick looked forward to “putting to rest the inaccurate and baseless claims in the media.”
Though the committee’s investigation into Mr. Epstein and the Justice Department’s handling of the case against him has sprawled to include a number of political figures, Mr. Lutnick is the first current Trump administration official to testify before the panel.
The committee also issued a subpoena to Pam Bondi, the former attorney general who Mr. Trump fired last month, before she was dismissed from her position. She has not yet appeared for a deposition.
Questions by lawmakers in the closed-door session on Wednesday could touch on Mr. Lutnick’s former nanny. The files showed that Mr. Epstein expressed an interest in meeting the nanny in 2013 and had her résumé sent to him. It is not clear if they ever met.
Mr. Lutnick said in February that he did not know if the nanny had met Mr. Epstein, or if she was one of the nannies Mr. Lutnick had brought to the island. Mr. Lutnick has four children.
In October, Mr. Lutnick said in a podcast interview that he had decided after a 2005 incident not to associate with Mr. Epstein, after Mr. Epstein alluded to his sexual encounters with women while giving Mr. Lutnick and his wife a tour of his house.
“My wife and I decided that I will never be in the room with that disgusting person ever again,” Mr. Lutnick said on the podcast, “Pod Force One.” “So I was never in the room with him socially, for business or even philanthropy.”
But in a congressional hearing in February, Mr. Lutnick told lawmakers that he not only met with Mr. Epstein after that encounter, but that he and his family also traveled to his private Caribbean island, Little St. James, in 2012 for lunch. Mr. Lutnick was traveling aboard his yacht, accompanied by his wife, children, nannies and another family.
The visit took place four years after Mr. Epstein had pleaded guilty in Florida to soliciting prostitution from a minor as part of a plea bargain with federal prosecutors.
Business
Last resort in Primm, former gambling mecca at the California-Nevada border, will close
Primm Valley Resorts, the last full-time casino among a cluster of three off Interstate 15 in Primm, at the California-Nevada border, is permanently closing, according to a termination notice sent to employees on Tuesday.
The letter, posted by Las Vegas insider publication Las Vegas Locally, noted that employees who worked at Primm Valley would be let go by July 4. It’s not known if the casino will close that day or before.
An email to Primm Valley Resorts owner Affinity Gaming was not immediately returned.
Primm Valley was the last of three operating casino resorts in Primm, formerly known as State Line. The castle-shaped Whiskey Pete’s opened in 1977, followed by Primm Valley in 1990 and Buffalo Bill’s in 1994.
In a letter to the Clark County Board of Commissioners, Erin Barnett, Affinity’s vice president and general counsel, wrote in October 2024 that “traffic at the state line has proved to be heavily weighted towards weekend activity and is insufficient to support three full-time casino properties.”
Along with Primm Valley Resorts, Primadonna Co. LLC, owned by Affinity Gaming, is closing the Primm Center gas station and the Flying J truck stop located at Whiskey Pete’s; that casino closed in December 2024.
The termination notice comes nearly a year after Affinity Gaming ended 24/7 operations at Buffalo Bill’s Resort on July 6. The casino opened on days in which its concert venue, the Star of the Desert Arena, hosted special events.
Lights glow on the Buffalo Bill’s Resort and Casino sign on July 6, 2025, in Primm, Nev.
(Bridget Bennett / For The Times)
It’s unclear what happens to music and magic acts booked until July 25.
It’s not known how long other Affinity-owned properties in the area, such as the popular Lotto Store on the California side of the border, will continue to operate. Nevadans have been known to drive for several miles and wait in long lines to buy Powerball tickets, particularly when jackpots creep into 10 figures.
The notice informed employees “this action is expected to result in the permanent termination of employment for all employees at these locations.”
As late as September, Primm Valley Resorts emailed media members promoting renovated rooms and signature experiences at its final resort.
Primm once shined as one of Nevada’s more popular gambling resorts. The three-casino complex served as a less expensive, less flashy, slightly more kitschy alternative to Las Vegas that benefited from being a good 45 minutes closer to Los Angeles than Sin City.
Several factors have contributed to Primm’s slow decline, including the COVID pandemic and increased competition from casinos popping up on tribal lands in California.
Those newer casinos are easier to get to than Primm from key Southern California population centers, reducing the value proposition.
Business
‘Avatar’ Suit Focuses on Hot Topic in A.I. Age: A Character’s Face
An actress accused the director James Cameron of stealing her likeness to create an “Avatar” character in a lawsuit filed on Tuesday in California — a case that reflects a core fear among Hollywood performers in the artificial intelligence age: losing control of their own faces.
The actress, Q’orianka Kilcher, also sued Disney, which controls the multibillion-dollar “Avatar” franchise, which started in 2009.
“In the age of A.I., our likeness is no longer safe,” Ms. Kilcher, 36, said in an interview. “While what happened to me is personal, it’s also a big warning that, if we don’t act now, this type of thing will become standard. This case is about the future of identity.”
The lawsuit involves Neytiri, the digitally created, blue-skinned warrior princess in Mr. Cameron’s three “Avatar” blockbusters. According to the complaint, Mr. Cameron used a photo of Ms. Kilcher as a teenager — without her knowledge — as the foundation for Neytiri, incorporating her features “directly into his production art” and digital production pipeline.
“Neytiri’s lips, chin, jawline and overall mouth shape” in the trilogy “are Q’orianka Kilcher’s,” the complaint said. “This was not a fleeting inspiration or a vague homage; it was a literal transplant of a real teenager’s facial structure.”
In 2010, Ms. Kilcher, who is also an Indigenous rights activist, met Mr. Cameron by chance at a charity event in Hollywood, where he told her that she was the “early inspiration” for Neytiri’s look, according to the complaint. “She did not take this to mean that her actual face had been replicated,” the complaint said.
Ms. Kilcher is suing now, the complaint said, because of an interview that Mr. Cameron gave to a French media outlet in 2024. In the interview, Mr. Cameron mentions Ms. Kilcher and “points to an image of Neytiri and says unambiguously: ‘This is actually her lower face,’” the complaint said. The interview came to her attention a year later.
“For the first time in a public forum, Cameron explicitly admitted the full truth about Neytiri’s design,” according to the complaint, which was filed in the U.S. District Court for the Central District of California in Los Angeles. “One of Hollywood’s most powerful filmmakers exploited a young Indigenous girl’s biometric identity and cultural heritage to create a record-breaking film franchise, without credit or compensation to her.”
A lawyer for Mr. Cameron did not respond to a request for comment. Disney had no immediate comment.
Ms. Kilcher’s action is the latest in a large number of legal attacks on “Avatar” over the years — almost all of them resolved by courts in Mr. Cameron’s favor, including five separate lawsuits accusing him of copyright infringement or the stealing of ideas. A sixth infringement lawsuit is ongoing and was expanded last month.
In part, Ms. Kilcher is suing under California’s decades-old “right of publicity” statute, which allows people to bring claims against unauthorized use of their identities. It’s a complex area of the law that has taken on a new immediacy in the age of generative A.I., an emerging technology that allows anyone with an internet connection to easily create images that replicate existing art, photographs and human likenesses.
Generally speaking, right-of-publicity laws (about 25 states have one) balance First Amendment protections by distinguishing between commercial exploitation (using a likeness to sell a product) and expressive works (such as news, art, parody). But “there is not always a bright line,” said Jennifer E. Rothman, a professor at the University of Pennsylvania’s Carey Law School who is viewed as a leading authority on right-to-privacy law.
Ms. Kilcher’s break in Hollywood came in 2005 when, as a 14-year-old, she was cast as Pocahontas in Terrence Malick’s “The New World.” She has since acted in films like “Dog” and TV shows like “Yellowstone,” and is a member of the Academy of Motion Picture Arts and Sciences.
Ms. Kilcher is asking for damages that include “all profits” attributable to the unauthorized use, including from the sale of “Avatar” tickets; the three “Avatar” films have collected $1.8 billion at the North American box office alone.
“The damages we are asking for are commensurate with the exploitation,” Arnold P. Peter, one of Ms. Kilcher’s lawyers, said in an interview.
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