Bahrain has joined the United Arab Emirates in agreeing to normalise relations with Israel, a move forged partly through shared fears of Iran but one that could leave the Palestinians further isolated.
US President Donald Trump posted the announcement on Twitter after he spoke by phone, according to the White House, to Bahrain's King Hamad bin Isa Al Khalifa and Israeli Prime Minister Benjamin Netanyahu.
"This is truly a historic day," Mr Trump told reporters in the Oval Office, saying he believed other countries would follow suit.
"Opening direct dialogue and ties between these two dynamic societies and advanced economies will continue the positive transformation of the Middle East and increase stability, security, and prosperity in the region," the United States, Bahrain and Israel said in a joint statement.
Palestinians were dismayed, fearing the moves by Bahrain and its fellow Gulf Arab state, the United Arab Emirates, will weaken a longstanding pan-Arab position that calls for Israeli withdrawal from occupied territory and acceptance of Palestinian statehood in return for normal relations with Arab countries.
Another HISTORIC breakthrough today! Our two GREAT friends Israel and the Kingdom of Bahrain agree to a Peace Deal – the second Arab country to make peace with Israel in 30 days!
— Donald J. Trump (@realDonaldTrump) September 11, 2020
A month ago, the UAE agreed to normalise ties with Israel under a US-brokered deal scheduled to be signed at a White House ceremony on Tuesday hosted by Mr Trump, who is seeking re-election on 3 November.
The ceremony is due to be attended by Mr Netanyahu and Emirati Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan.
The joint statement said Bahrain's Foreign Minister Abdullatif Al Zayani will join that ceremony and sign a "historic Declaration of Peace" with Mr Netanyahu.
Mr Netanyahu said Bahrain's decision marks a "new era of peace."
"For many long years, we invested in peace, and now peace will invest in us, will bring about truly major investments in Israel's economy," Mr Netanyahu said in a video statement.
Bahrain is home to the US Navy's regional headquarters. Saudi Arabia in 2011 sent troops to Bahrain to help quell an uprising and, alongside Kuwait and the UAE, in 2018 offered Bahrain a $10 billion economic bailout.
Bahrain became the fourth Arab country to reach such an agreement with Israel, which exchanged embassies with Egypt and Jordan decades ago.
A statement issued in the name of the Palestinian leadership condemned the agreement as a betrayal of the Palestinian cause.
The Palestinian Foreign Ministry said the Palestinian ambassador to Bahrain was called back for consultations.
In Gaza, a Hamas spokesman said Bahrain's decision to normalise relations with Israel "represents a grave harm to the Palestinian cause, and it supports the occupation."
The forging of relations with Israel is happening against a backdrop of shared fears about the threat that Iran may pose to the region.
The biggest question now is whether Saudi Arabia, one of the Middle East's most influential countries and a close US ally, will follow suit.
Mr Trump's administration has tried to coax other Sunni Arab countries, including Saudi Arabia, to engage with Israel.
Saudi Arabia, a key Sunni rival to Shia Iran, has so far signalled it is not ready.
At the Arab League on Wednesday, the Palestinians sought but did not obtain a condemnation of the UAE-Israel accord from fellow members. They did secure renewed Saudi support for their right to statehood.
Last week, Bahrain said it would allow flights between Israel and the UAE to use its airspace. This followed a Saudi decision to allow an Israeli commercial airliner to fly over it on the way to the UAE.
The United States, Israel and the UAE have urged Palestinian leaders to re-engage with Israel.
Negotiations last broke down between Israelis and Palestinians in 2014, and Palestinian President Mahmoud Abbas has refused to have political dealings with the Trump White House for more than two years, accusing it of pro-Israel bias
