Traditional data analysis often represents data as a weighted graph with pairwise similarities, but many problems do not naturally fit this framework. In line clustering, points in a Euclidean space must be grouped so that each cluster is well approximated by a line segment. Since any two points define a line, pairwise similarities fail to capture the structure of the problem, necessitating the use of higher-order interactions modeled by geometric hypergraphs. We encode geometry into a 3-uniform hypergraph by treating sets of three points as hyperedges whenever they are approximately collinear. The resulting hypergraph contains information about the underlying line segments, which can then be extracted using community recovery algorithms. In contrast to classical hypergraph block models, latent geometric constraints in this construction introduce significant dependencies between hyperedges, which restricts the applicability of many standard theoretical tools. We aim to determine the fundamental limits of line clustering and evaluate hypergraph-based line clustering methods. To this end, we derive information-theoretic thresholds for exact and almost exact recovery for data generated from intersecting lines on a plane with additive Gaussian noise. We develop a polynomial-time spectral algorithm and show that it succeeds under noise conditions that match the information-theoretic bounds up to a polylogarithmic factor.