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Ted Cruz has called his win in the Republican Iowa caucus "a tremendous victory for the grass roots".
Speaking to ITV News' Washington Correspondent Robert Moore, the Republican presidential hopeful said "people are ready for a change".
Cruz caused a huge upset by beating Donald Trump in Iowa's Republican caucuses, while Hillary Clinton claimed a narrow victory over rival Bernie Sanders.
Hillary Clinton's campaign has declared victory over Bernie Sanders in the Iowa caucus.
In a statement, the official Clinton campaign said there was "no uncertainty" that Hillary Clinton had won the nominating contest.
Hillary Clinton has won the Iowa Caucus. After thorough reporting - and analysis - of results, there is no uncertainty and Secretary Clinton has clearly won the most national and state delegates.
Statistically, there is no outstanding information that could change the results and no way that Senator Sanders can overcome Secretary Clinton's advantage.
The Democrat rivals were deadlocked with both receiving roughly 50% of the vote in what Bernie Sanders previously declared as a "virtual tie."
Polls show former Secretary of State Hillary Clinton and US Senator Bernie Sanders are too close to call in Iowa.
The Democrat rivals came in deadlocked both receiving roughly 50% in what Sanders, a self-described democratic socialist, declared as a "virtual tie."
The party said it was awaiting results from a "small number of outstanding precincts" and had reached out to the campaigns for help contacting the chairs from those sites.
ITV News Political Editor Robert Peston said the tie was a "bigger story" than Donald Trump falling into second place in the caucus - noting a "huge surge" by the man he described as "America's Jeremy Corbyn".
Ted Cruz caused a huge upset by beating Donald Trump in Iowa's Republican caucuses.Read the full story ›
Bernie Sanders says he and Hillary Clinton are in a "virtual tie" to win the Democratic Iowa caucuses.
Sanders said he expected to have half the Iowa delegates campaigning for him at the Democratic National Convention in July, where the party's candidate will be confirmed.
The self-style Democratic socialist said "given the enormous crisis...it is too late for establishment politics and establishment economics."
Hillary Clinton said she was "breathing a big sigh of relief" but stopped short of claiming victory against Bernie Sanders in the Iowa caucuses.
- called herself a progressive "that gets things done for people"
- said she was looking forward to getting into a debate with her rival Bernie Sanders about "the best way forward"
- condemned the Republicans as "divisive"
- vowed to make college education affordable and "finish the job" of universal healthcare
Ted Cruz hailed his victory in the Iowa caucuses as a win for the grassroots and courageous conservatives.
"God bless the great state of Iowa," he told supporters who relentlessly chanted "Ted! Ted Ted!".
The Texas senator said his victory was also for the "millions of Americans" who have "shouldered the burden" during the Obama era.
He said the result showed that the nominee would not be chosen by the media, the Washington establishment or lobbyists.