Benedikt stated that although the Independence Party is the largest following the election, with 29 percent support, that doesn't necessarily mean its leader, Bjarni Bendiktsson, should be given the mandate to form a government.
Birgitta Jonsdottir of the Pirate party is interviewed after she casts her vote in a ballot box at a polling station in Reykjavik, Iceland, Saturday, Oct. 29, 2016.
But the results mean the seven MPs from the newly established, liberal and pro-European Viðreisn, or Regeneration, party, which split from Independence this year over the question of Iceland's eventual European Union membership, could well be kingmakers - making already delicate coalition negotiations even more hard than usual.
The anti-establishment Pirate party tripled their number of seats to 10.
The party won support from many in the wake of Iceland's 2008 financial crisis and the Panama Papers' revelations earlier this year.
"I'm a bit disappointed so far but it's still too early", Prime Minister Sigurdur Ingi Johannsson of the ruling centre Progressive Party told RUV.
The Independence Party rose to 30.3 per cent from 26.7 per cent in 2013, while coalition partner, the Progressive Party, slumped to 10.6 per cent from 24.4 per cent, according to a partial 35 per cent count.
According to polls the Piratar (Pirate) Party, an anti-authoritar. However, only about half of them gained more than 5 percent of the vote required to receive representation in the parliament.
The Pirates sealed a pre-coalition agreement with three other left-center parties and together they garnered 28 seats of the 32 required for an absolute majority in the Icelandic parliament.
"We're loosing support (because of the) big anti-establishment (feeling)", Mr Birgir Armannsson, member of Parliament for the Independence Party, told AFP.
In a press annoncement the Pirate Party states, "Today, general elections take place because of corruption within the governing parties".
"If we get more than 15 percent, we will be deeply thankful", she said.
The Pirates and their popularity in Iceland still hold the fascination of the worldwide media and when Birgitta Jonsdottir Pirates leader went to vote this morning she was followed by "a wall of reporters" according to Visir.
"The Pirates are in fact a rather loose alliance of people who are mainly united in their opposition to traditional politics and the system", the newspaper said. It is performing strongly among conservative voters seeking a change from the old parties. "Like Robin Hood, because Robin Hood was a pirate, we want to take the power from the powerful to give it to the people".
It was hurt badly when Sigmundur David Gunnlaugsson resigned as prime minister in April after documents leaked from a Panamanian law firm linked him to an offshore company that held millions of dollars in debt from failed Icelandic banks.
As scores of Pirate supporters from Iceland and around the world watched the election results come in at a Reykjavik brewpub, the boisterous mood was tinged with disappointment.