Israel’s longest-serving leader, Benjamin Netanyahu, has been removed from office after a record-breaking 12-year run.
Parliament voted in a new coalition government, swearing-in right-wing nationalist Naftali Bennett as prime minister, leading a "government of change".
Per BBC News, Bennett will lead an unprecedented coalition of parties which was approved with a majority of 60-59.
Bennett is set to be prime minister until September 2023 as part of a power-sharing deal. He will then hand power over to Yair Lapid, leader of the centrist Yesh Atid, for a further two years.
Meanwhile, Netanyahu will remain head of the right-wing Likud party and become the leader of the opposition.
Netanyahu, 71, has vowed to lead his Likud Party back to power and "topple this dangerous government and return to lead the country in our way".
During the debate in parliament, a defiant Netanyahu promised: "We'll be back."
Bennett has promised to unite a nation frayed by years of political stalemate. He said his government would "work for the sake of all the people", adding that the priorities would be reforms in education and health.
In his speech, Bennett, 49, said: "This is not a day of mourning. There is a change of government in a democracy. That's it.
"We will do all we can so that no one should have to feel afraid... And I say to those who intend to celebrate tonight, don't dance on the pain of others. We are not enemies; we are one people."
US President Joe Biden also congratulated the two on their win during a phone call and said he was looking forward to working with the Israeli PM "to strengthen all aspects of the close and enduring relationship between our two nations".
He added: "Israel has no better friend than the United States. The bond that unites our people is evidence of our shared values and decades of close cooperation and as we continue to strengthen our partnership, the United States remains unwavering in its support for Israel’s security.
"My administration is fully committed to working with the new Israeli government to advance security, stability, and peace for Israelis, Palestinians, and people throughout the broader region."