Saudi Arabia's king deposed the sitting crown prince and replaced him with Mohammed bin Salman bin Abdulaziz, the deputy crown prince, the state news agency reported.
Prince Mohammed will continue in his role as minister of defense, according to the royal decree cited by state media.
Prince Mohammed visited the US in March, where he had lunch at the White House in the highest level meeting at the time between Saudi Arabia and US President Donald Trump.
Prince Mohammed is spearheading the kingdom's attempts to wean itself off oil as part of an economic strategy called Vision 2030 announced last year. He's also defense minister and son of King Salman.
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