AssessmentsMar 11, 2026 | 18:20 GMT
Iran War Exposes Bahrain to Fiscal Risks, Sectarian Tensions
The Iran war risks fueling sectarian tensions in Bahrain and further straining its economy due to disruptions to energy and aluminum exports. Other Gulf countries may choose security and economic intervention to stabilize the country, with a financial package potentially conditioned on further fiscal consolidation efforts. Bahraini authorities have been cracking down on protesters and government critics following domestic protests after the Feb. 28 assassination of Iranian Supreme Leader Ayatollah Ali Khamenei during U.S. and Israeli strikes against Iran. The protests, a rare instance of civil unrest in the kingdom, have involved at least hundreds of participants from the majority Shiite Bahrain population and extended to cities and villages throughout the country. While the majority of protests were peaceful, some protesters threw Molotov cocktails and clashed with Bahraini security forces, resulting in several dozen arrests. Although Bahraini authorities have limited publicity of the demonstrations, security forces' arrests and government measures
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