The Gulf kingdom accused Tehran of being behind an oil pipeline fire that it termed a "terrorist act." Iran rejected the claims as "false talk and childish accusations."
Bahrain said the explosion on its main oil pipeline on Friday was a result of "terrorist sabotage," linked to its arch-enemy Iran, who the Sunni-ruled Gulf kingdom blames for fanning unrest in the country.
"The incident was an act of sabotage and a dangerous act of terrorism aimed at harming the higher interests of the nation and the safety of the people," the interior ministry said on its website.
"Terrorist acts witnessed by the country in the recent period are carried out through direct contacts and instructions from Iran," the statement quoted Interior Minister Sheikh Rashid bin Abdullah al-Khalifa as saying.
In Tehran, a spokesman for the Iranian foreign ministry on Sunday rejected the accusations.
"Obviously, the only thing Bahraini officials have learned to do after each incident in the emirate is to accuse Iran," Bahram Ghassemi said.
"The era of childish accusations and lies is over," he said, adding Iran wanted "the stability and security of its neighbors."
Credit to DW.com