REYKJAVIK, Iceland — Iceland’s ruling Independence Party took the largest share of the vote in the island nation’s parliamentary election but faces difficult negotiations to form a new government after populist candidates showed unexpected strength.

A record eight parties won seats in Saturday’s vote.

Despite topping the poll, the Independence Party saw its support decline to 25 percent. The three-party governing coalition lost 12 seats, leaving it 11 seats shy of a majority in Parliament.

The opposition left Green Movement finished second, with 17 percent, despite predictions it could win.

‘‘Everyone lost,’’ said political analyst Gunnar Smari Egilsson said. ‘‘The current opposition gained no seats, while the ruling coalition lost 12 seats. Populists alone triumphed.’’

The upstart Center Party and People’s Party both exceeded expectations, winning 11 percent and 7 percent of the vote, respectively, with promises to work for the average Icelander. Many working-class people feel they’ve been left behind by the island’s tourism boom.

Iceland, population 330,000, became a poster child for the 2008 global financial meltdown when its debt-laden banks collapsed. That triggered political as well as economic chaos. About 40 percent of the sitting members of Parliament have lost their seats in each election since the crisis.

The current government, which had been in power only a year, collapsed in September amid allegations the prime minister’s father backed an effort to help the job prospects of a convicted pedophile.

Voters took to social media Sunday to lament the country’s third government in four years — though some joked the position of prime minister was probably the most unstable job in the gig economy.

Associated Press