Bahrain was ordered by the Permanent Court of Arbitration in The Hague to pay over 200 million euros in damages plus costs to two Iranian banks for the unlawful expropriation of their banking venture in Manama in an act of "political retribution".
Iran’s Foreign Ministry spokesman strongly dismissed the allegations made by a Bahraini court against Central Bank of Iran and a number of other Iranian banks, saying those claims have been politically motivated and lack legal value.
The UAE and Bahrain have dramatically slashed their financial assistance to the the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) after the two Persian Gulf states agreed to clinch US-brokered deals to normalize ties with Israel last August.
The Supreme Council of the World Assembly of Islamic Awakening condemned the United Arab Emirates and Bahrain’s moves to establish relations with Israel, calling on all Islamic nations and governments to support the cause of Palestine until ultimate victory against Israel.
Iran's Islamic Revolution Guards Corps (IRGC) condemned the establishment of diplomatic relations between Bahrain and Israel, saying the Bahraini ruler will face “harsh revenge” from Muslim nations, and the country's citizens over the move.