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Texas Senator Ted Cruz handed a shock defeat to controversial presidential contender Donald Trump in the Iowa Republican caucuses while in the Democratic camp both Hillary Clinton and Bernie Sanders claimed victories as the race for the White House began on Tuesday.
As the results of the Iowa Caucuses came in, the crowded Republican presidential race appeared to be narrowing down to a three-cornered contest with Marco Rubio coming a close third behind Cruz and Trump.
With almost all the votes counted, Cruz bagged 28 per cent of the total votes with a lead of over 5,500 votes against Trump's 24 per cent. Rubio was third with 23 per cent. Neurosurgeon-turned-politician Ben Carson was a distant fourth with nine per cent.
In the Republican party, the greatest surprise, according to political pundits, was Rubio, who got 23 per cent of the votes, much better than any polls had predicted.
Cruz, in his Iowa victory speech, said, "Tonight is the victory for courageous conservative. Iowa has send notice that the next Republican nominee or the president would not be chosen by the media, would not be chosen by the lobbyist, or by the Washingtonians...would be chosen by the American people."
"Tonight Iowa has proclaimed to the world that morning is coming," he said amidst cheer from his supporters.
In his first reaction after coming second in Iowa, Trump said, "We finished second. I am just honoured. I want to congratulate Ted (Cruz)," Trump said at a campaign event after the results were out.
The real estate tycoon said he never expected such a second place finish in Iowa when he started his campaign on June 16, 2015.
Referring to the next primary destinations of New Hampshire and South Carolina, Trump exuded confidence over winning the party's nomination.
"We will go on to win the Republican nomination," Trump said and claimed that he will beat either of the potential Democratic nominee -- Clinton or Sanders.
From Iowa, the race to the White House now moves to New Hampshire where the primaries are scheduled for February 9 and then to South Carolina.
In both the states, Trump is leading by a huge margin, according to latest opinion polls.
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On the Democratic side, it was too close to call between former Secretary of State Clinton and Sanders. Both of them split almost 50 per cent of the votes each.
Clinton, who is aiming to become the first woman president of the US, got 49.8 per cent of votes, with nearly 90 per cent of the votes counted.
Sanders, who was trailing behind Clinton by more than 20 points several weeks ago, polled 49.5 per cent of the votes.
Declaring victory, Clinton said it is rare to have a real contest of ideas.
"I am a progressive to get things done for the people. Status quo is not good enough," she said with her husband and the former president Bill Clinton and daughter Chelsea Clinton standing by her side.
She reiterated her ambition to make US the clean energy super power of the world, and protect the rights of women and
immigrants and stand up to the strong gun lobby.
Clinton also lashed out at the divisive policies of the Republican candidates.
"What Iowa has begun tonight is a political revolution," Sanders told his cheering supporters. He said he would have about half of the Iowa delegates.
"Enough is enough. Our government belongs to the people and not just to the billionaires," he said.
"It's a virtual tie. We do not represent the interest of the billionaire class and corporate America," Sanders said, adding that his campaign would do well in the other states.
American people, he said, have said "no" to a rigged economy.
America is "ready for a radical idea", Sanders said and promised to raise the minimum wage to USD 15 an hour and equal pay for women.
Public colleges and education should be tuition free, he said, adding that he would do so by imposing a tax on The Wall Street speculation.
Meanwhile, the third Democratic party presidential aspirant Martin O'Malley announced to suspend his campaign.
On the Republican side, Mike Huckabee announced to suspend his campaign. Both Rubio and Trump praised him with the objective of gaining his support.
The first primary in Iowa attracted a record number of people for the caucuses.