Bahrain denies plans to import products from Israeli settlements
The Gulf state's statement was a swift response to its own minister of trade who said Manama would be open to sourcing products made in illegal Israeli settlements located in occupied Palestinian territory.
Bahrain "will treat Israeli products as Israeli products … so we have no issue with labelling or origin", Bahrain's Industry, Commerce and Tourism Minister Zayed bin Rashid al-Zayani said earlier this week.
But in a statement issued on Friday, Bahrain's official state news agency BNA said the minister "was misinterpreted".
"The ministry is committed to the Bahraini government's unwavering stance regarding adherence to the resolutions of the United Nations," BNA reported, quoting an official source from the ministry.
A similar statement was made by Palestinian Foreign Minister Riyad al-Maliki after a phone call with his Bahraini counterpart.
"The alleged comments … totally contradicted his country's [Bahrain] supportive position of the Palestinian cause," a statement from al-Maliki's office said, Al Jazeera reported.
Al-Zayani's comments come after the US announced in November it would consider exports from much of the West Bank as "Made in Israel".
The new guidelines will apply especially to Area C, Secretary of State Mike Pompeo said. Area C is the part of the West Bank where Israel retains full civil and military control and where much of the settler population lives.
The decision on labelling "blatantly violates international law", said Nabil Abu Rudeinah, a spokesman for Palestinian President Mahmoud Abbas, dismissing it as yet another biased move by Trump's administration.
Read more: Behind Bahrain's gamble on normalisation with Israel
The Bahrain's foreign minister embarked on the first-ever trip by a top Bahraini official to Israel in November.
During his visit, FM Abdullatif bin Rashid al-Zayani called to resume Israeli-Palestinian peace talks and reportedly said regional peace would only prevail with the "creation of a Palestinian state alongside Israel".
The UAE led the way in forging ties between the Gulf and Israel, announcing its decision first in August - a month before Bahrain followed suit.
The Gulf agreements have been condemned by Palestinians, who consider the deal a "betrayal" to their cause.
Agencies contributed to this report.