For his first appearance as Hamas leader, Haniyeh chose a symbol of elusive Palestinian unity - a solidarity tent where several political factions are represented, including Hamas and the Fatah movement of Palestinian Authority President Mahmoud Abbas.
"Under its new leadership, the movement must continue and intensify its efforts to strengthen internal Palestinian relations ... strengthen the steadfastness of our people, and mobilize Arab, Islamic and global powers to stand by the Palestinian people", said Hamas spokesman Fawzi Barhoum in a statement announcing Haniyeh's selection.
Considered a terrorist group by the United States and the European Union, Hamas has taken steps in recent days that are seen as a bid to ease its global isolation while not alienating hardliners within the movement.
In a document issued last week Hamas said it was dropping its longstanding call for Israel's destruction, but said it still rejected the Jewish state's right to exist and continued to back "armed struggle" against it.
In its founding charter, Hamas called for setting up an Islamic state in historic Palestine, or the territory between the Mediterranean and the Jordan River, which also includes Israel.
He first rose to prominence as bureau chief under Hamas's spiritual father Sheikh Ahmed Yassin, the quadriplegic assassinated by Israel in 2004.
The Israeli leader observed that Hamas is speaking out of both sides of its mouth.
In its new platform, Hamas has softened some of its positions but reaffirmed it will not recognize Israel, renounce violence, or recognize previous interim Israeli-Palestinian peace deals - the West's long-standing conditions for dealing with Hamas.
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Hamas as a whole, or in some cases its military wing, is designated a terrorist group by Israel, the US, EU, UK and other powers.
The Rafah crossing is Gaza's only gateway to the outside world not controlled by Israel, but it has remained largely closed in recent years because of tensions between Egypt and Gaza's Islamist rulers Hamas.
Hundreds of Palestinians in Israeli jails have been refusing food since April 17.
Hamas is listed as a terrorist organisation by the USA and EU.
This shift is also seen as a symptom of rising financial pressure exerted by Hamas' main rival, Fatah, on the small territory with a population of two million.
"We are opposed to Hamas's acceptance of a state within the 1967 borders and we think this is a concession which damages our aims", he said on Islamic Jihad's website.
A spokesman for Israeli PM Benjamin Netanyahu said Hamas was "attempting to fool the world but it will not succeed".
Last month, the Palestinian Authority announced a series of steps to cut spending in the Gaza Strip in order to "dry up" sources of funding for Hamas rule.
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