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Summary
After instability during the late 1990s, Bahrain undertook substantial political reforms, but the Shiite majority continues to simmer over the Sunni-led governments perceived manipulation of laws and regulations to maintain its grip on power. In late 2008, tensions again manifested as large demonstrations and some arrests of Shiite opposition leaders. Smaller but frequent incidents of violence continue. Underlying the unrest are lingering Bahraini government fears that Iran is supporting Shiite opposition movements, possibly in an effort to install a Shiite led, pro-Iranian government on the island, which some Iranian political leaders believe should never have become formally independent of Iran. With few options other than relying on a tacit U.S. security umbrella, Bahrain has sought to accommodate Iran's power and interests, in part by signing new energy agreements with Iran. Bahrain's stability has long been a key U.S. interest; it has hosted U.S. naval headquarters for the Gulf for over 60 years. These facilities along with the U.S. designation of Bahrain as a Major Non-NATO Ally imply a U.S. security guarantee to Bahrain, but such a U.S. commitment is not formal or explicit. In September 2004, the United States and Bahrain signed a free trade agreement (FTA); legislation implementing it was signed January 11, 2006 (P.L. 109-169). This report will be updated.





