In a brief statement, the regatta organisers said they would be working with the authorities and relevant agencies, to work through the ongoing ramifications.
It's a curveball for the teams, who have tightly planned schedules and carefully managed timetables.
But Ineos Team UK skipper Sir Ben Ainslie said New Zealand "has led the world" with their response to Covid-19 and it was logical that sporting endeavours took a back seat in these situations.
"The biggest concern is for society here in New Zealand," Ainslie told the Herald. "They have done a fantastic job in keeping everyone safe so we certainly respect the authorities' decisions and will do what we can to work with those.
"Hopefully things can be contained. New Zealand has led the world in how to react to the pandemic so fingers crossed that things are under control and we will see how long we have to remain at level three."
Ainslie said it was a sharp reminder, after months of Covid-19-free life here.
"New Zealand has done an incredible job and we have been so lucky to be able to have this sporting event," said Ainslie. "It is just the reality of the situation around the world and the only thing you can do is react and keep everyone safe and it is good to see the government doing that. We will abide by the guidelines and hope things clear up."
Ainslie and the Ineos Team UK senior management planned to meet tonight, ahead of extended team briefing on Monday morning to assess possible timeframes and contingency plans.
The enforced shutdown could give the British a chance to regroup and reassess, after they lost both races on Sunday to be struggling at 4-0 down in the best of 13 series, but Ainslie dismissed any notion of a silver lining to the lockdown.
"The forecast for Wednesday was really good (strong winds) and we would want to be out there," said Ainslie. "But it is out of our hands and we respect the decision. Whenever we can get back on the racecourse, we will look forward to it.
"[But now] we will take the time to evaluate the last few days racing, some of the mistakes that have been made and what we can do to rectify that."
Luna Rossa co-helmsman Francesco Bruni was philosophical about the decision. Like Ainslie, he heard the news only minutes before Sunday's post-race press conference and was taking a 'wait and see' approach.
"We will do what we have to do," said Bruni. "It doesn't change much. Maybe it will give us more time to do some modifications on the boat.
"We will have check how long it is going to be, but I am sure New Zealand will react very sharply, like they have done so far."
Bruni admitted the new situation would take some adjustment.
"It's a very strange feeling," said Bruni. "We have lived the dream so far in New Zealand so hopefully we will go back to level one very soon."