Israel and Bahrain have formally established diplomatic relations, writes BBC.
The deal - brokered by the US - was signed in the Bahrain capital, Manama.
For decades, most Arab states have boycotted Israel, insisting they would only establish ties after the Palestinian dispute was settled.
Bahrain is now the fourth Arab country in the Middle East - after the UAE, Egypt and Jordan - to recognize Israel since its founding in 1948. Palestinians have condemned the diplomatic moves as a “stab in the back”.