Norway's minority Labour Party government led by Prime Minister Jonas Gahr Stoere, won a second term in power on Monday while the populist right achieved its best-ever election result, official results showed, in a ballot dominated by concerns over rising living costs and wars in Ukraine and Gaza.

Labour and its four left-leaning allies secured 87 seats in the 169-seat parliament, just over the majority threshold.

Despite the victory, Stoere will remain heavily dependent on smaller parties to pass key legislation, with contentious debates expected on taxes for the wealthy, oil exploration, and the sovereign wealth fund’s investments in Israeli companies.

"Stoere will continue as prime minister, but with a much more difficult parliamentary situation, in which he is dependent on five parties to govern," Jonas Stein, an associate professor in political science at the University of Tromsoe said.

The election also highlighted a significant shift to the right among voters.

The Progress Party, led by Sylvi Listhaug, achieved its strongest-ever result, winning 48 seats, more than double its previous tally. Promising deep tax cuts and railing against government spending on foreign aid and green subsidies, Listhaug struck a chord with younger, more conservative voters.

Despite gains by the right, Stoere said the result showed social democracy’s resilience in Europe. The wars in Ukraine and Gaza shaped the campaign, while Stoltenberg’s role in the cabinet reassured voters on security during tensions with Russia.

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