Kyle Kirkwood led early and Colton Herta became a contender when a mid-race Caution saw strategies diverge but the #10 Chip Ganassi Racing crew had the smarts and the speed to take victory and reclaim the series lead.

Herta finished 1.9780s behind the #10 Honda after 95 laps, with Alexander Rossi third from Romain Grosjean, Kirkwood, Scott Dixon, Power, Pato O’Ward, Santino Ferrucci, and Marcus Ericsson (#28 Andretti Global Honda).

Josef Newgarden threw away an unlikely podium for Team Penske with two mistakes at Turn 6, where McLaughlin had already clattered into Power’s #12 Chevrolet as he tried to snatch sixth position at the Lap 79 restart.

Newgarden finished 19th and McLaughlin a lap down in 21st, the latter after serving a drive-through penalty for that incident.

Palou had qualified on pole position and had the preferred line at the start but Kirkwood (#27 Andretti Honda) hung tough at Andretti Hairpin and pinched the lead.

Felix Rosenqvist (#60 Meyer Shank Racing Honda) slotted into third, from Herta (#26 Andretti Global w/ Curb-Agajanian Honda), Rossi (#7 McLaren Chevrolet), Christian Lundgaard (#45 Rahal Letterman Lanigan Racing Honda), and Dixon (#9 CGR Honda).

McLaughlin (#3 Chevrolet), first of those to start on alternate tyres, dropped a spot to eighth while Penske team-mate Newgarden (#2 Chevrolet) ran 13th on his reds.

In the other Penske entry, Power plummeted all the way from 15th on the starting grid to 26th after he ran off at Turn 4.

He was still outside the top 20 when he pitted to swap to reds on Lap 18, before McLaughlin pitted from eighth on Lap 21 to take a second set of used reds.

Palou was stalking Kirkwood when Rossi peeled off from fourth on Lap 23 and Rosenqvist from third on Lap 24.

Kirkwood pressed on another lap longer before he too switched to new reds and while he rejoined ahead of Rosenqvist, both were behind Rossi.

The McLaren driver cycled to the very front when Palou and Dixon stopped on Lap 26, representing a gain of three positions on strategy.

Palou was still second but had stayed on blacks and dropped two spots when Kirkwood criss-crossed him off the Andretti Hairpin on Lap 28 and Herta rounded up Car #10 at Turn 3.

Dixon ran fifth, while McLaughlin had taken sixth after he jammed his #3 Chevrolet down the inside of Lundgaard at Turn 9 on Lap 26, with the RLL driver slipping off the track.

O’Ward inherited seventh and was Grosjean (#77 Juncos Hollinger Racing Chevrolet) eighth, before Newgarden dropped to 24th due to a drive-through penalty for an improper pit exit.

Rossi led by five seconds before Luca Ghiotto crashed the #51 Dale Coyne Racing Honda at Turn 4 and drew a Caution on Lap 35.

It split the field on strategies, with many of the top 10 pitting but Palou staying out.

He thus assumed the lead, from O’Ward, Grosjean, David Malukas (#66 MSR Honda), Marcus Armstrong, and another eight who did not pit.

It was Herta, however, who had jumped to the lead of the other strategy group in 14th position on blacks, with Rossi on used reds next after he was slow out of his box.

Grosjean rounded up O’Ward for second at the Andretti Hairpin upon the Lap 41 restart despite being on blacks versus the McLaren driver’s reds.

Another McLaren caused a second Caution almost immediately, Nolan Siegel looping the #6 Chevrolet on exit from Andretti.

That promoted Herta to 13th, from Rossi, Kirkwood (blacks), McLaughlin (blacks), Dixon (blacks), Rosenqvist (reds), and Power (blacks) in 19th.

There was a question mark over the two New Zealanders in that list, too, given Dixon hit the wall entering pit lane under Caution and was then clipped by McLaughlin.

The second restart came on Lap 43 and Palou put 1.5s on Grosjean in just one lap, during which Herta had risen to 10th and Rossi to 12th.

More pit stops began on Lap 46 and O’Ward was in for another set of reds on Lap 47.

Herta had cycled to fourth on Lap 52 but was more than 20 seconds behind leader Palou.

Grosjean and Newgarden pitted on Lap 54, before Palou was into the lane to swap blacks for a new set of reds on Lap 55.

He resumed in third place, leaving Herta in the lead with a margin of just under a second back to Rossi, but Palou had the advantage of not having to save fuel to get home.

Meanwhile, Kirkwood ran fourth, from McLaughlin, Dixon, and Power, with Grosjean resuming in eighth and Newgarden 12th.

Power took sixth when he fired past Dixon into The Corkscrew on Lap 58, as Palou closed in on second-placed Rossi.

The two-time champ picked off the 2016 Indy 500 winner at the Andretti Hairpin on Lap 62, at which point Herta was one second up the road.

Power overtook McLaughlin for fifth on Lap 63 before Palou breezed past Herta as they approached The Corkscrew on Lap 64 and disappeared to a four-second lead after just two laps more.

Kirkwood was in from fourth on Lap 66 for new blacks, before Herta, Rossi, Power, and McLaughlin all came in on Lap 67.

Palou put the hammer down with a personal best time on Lap 68 and would have liked to run longer given he had only used tyres left.

However, he caught traffic and the risk of a Caution proved too great, with strategist Barry Wanser calling Car #10 in on Lap 70 for a set of blacks for the run home, and he was followed into the lane by Grosjean.

Palou rejoined in second place but with about 10 seconds on Herta, before Rossi blazed past Grosjean on the Frenchman’s outside as they ran into The Corkscrew on Lap 72 in a battle for the effective podium.

Marcus Armstrong was bumped off the road by Lundgaard at Turn 4 on Lap 74 and the #11 CGR Honda spun back across the track before stalling.

Race control waited for Newgarden to pit before throwing the yellow flags again and that proved crucial for the Penske driver, who was able to pit for another set of blacks and get back out in second place, behind Palou.

Herta was third on blacks, from Rossi on reds, Grosjean on blacks, Power on blacks, McLaughlin on reds, Kirkwood on blacks, Dixon on blacks, and Malukas rounding out the top 10 on reds.

Restart 3 came on Lap 79 and McLaughlin looked to pass Power at Turn 6 but locked the rears and clattered into Car #12 then spun himself.

Power emerged ninth after finding himself in a three-wide run into The Corkscrew which saw Lundgaard off and airborne over the gravel trap on drivers’ right.

A lap later, Newgarden made an error of his own at Turn 6, running wide and dropping to fifth, restoring Herta to second place but more than three seconds behind Palou.

Herta was given a free kick with a Caution on Lap 83 due to an engine failure for Jack Harvey, whose #18 DCR Honda was stranded near pit exit.

The running order was Palou, Herta, Rossi, Grosjean, Newgarden, Kirkwood, Dixon, O’Ward, Power, and Santino Ferrucci (#14 AJ Foyt Racing Honda) ahead of the restart with 10 laps remaining.

Palou held off Herta at Andretti and gapped the Andretti driver by a second over that first lap back under green flag.

Yellows flew again on Lap 87 when Kyffin Simpson spun his #4 CGR Honda exiting Turn 6 with a flat tyre and was t-boned by Graham Rahal (#15 RLL Honda).

The top 10 was as you were but the Caution helped Herta given he was still needing to save fuel.

Palou pulled clear when the green flew again with four to go, before Power sped past O’Ward for eighth as they started the third-last lap.

Newgarden ran off and spun at Turn 6 on Lap 94, but there was no trouble for Palou as he clinched his third win of the year.

The next event marks the start of the hybrid era, at Mid-Ohio Sports Car Course on July 5-7 (local time).

Results: Race, Laguna Seca Raceway

Race winner: 95 laps

Series points