Portugal’s Prime Minister Luis Montenegro has announced a €600 million ($696 million) credit line aimed at supporting businesses grappling with rising energy costs linked to instability in the Middle East.

Luis Montenegro, leader of the Social Democratic Party (PSD) and head of the Democratic Alliance (AD), was officially sworn in as Portugal's new prime minister on Thursday. The 16 ministers of the new cabinet also took their oaths of office.

Portugal’s center-right Democratic Alliance (AD) won the most seats but fell short of a majority in Sunday’s general election as the far-right Chega party nearly overtook the Socialist Party for second place.