They're the faster boat up-wind and this is a big blow in the grand scheme of things.
Bit early in the morning for me - but there does look like there will be reason for a celebratory brew.
Team NZ with a 430-metre lead now. This race is as good as over.
Aside from a slight error at the bottom mark when Oracle grabbed the lead, this has been a fantastic first race from Dean Barker and co.
It sure has been. Team NZ still hold a sizeable advantage as they cross mark four.
It's a straight shot to the finish now and Team NZ will take the first race.
Team NZ approaching the finish line now.
And Team NZ takes the fist race!
Wow, what a start from the Kiwis.
Only half an hour or so to race two - Team NZ with a big psychological advantage as they now they are the faster boat.
And, of course, Oracle are still on minus-two. Team NZ need only eight wins, Oracle need 11.
"At least it won't be a down-trou," Dean Barker said in a post-race interview. "It's always nice to get the first point under the belt. I think what we saw there was one hell of a boat race.
"The guys did a really good job and it's nice to come away with a win."
Stay tuned for race two - set for 9.10am NZT.