Bahrain said an oil pipeline that exploded on Friday night was attacked by militants in the island nation.
The Bahraini foreign minister, Sheikh Khaled bin Ahmed, said the huge explosion that detonated in Buri, just outside the capital city of Manama, was an intentional act of terrorism and sabotage.
As a result of the fire in Bahrain, none was injured when the country's main oil pipeline caught fire.
Bahrain's claims are aimed at deflecting global attention from the indiscriminate attacks it has conducted against Yemeni civilians since 2015 as part of the Saudi alliance to reinstate the fugitive president Abd-Rabbu Mansur Hadi.
The fire service also evacuated homes in the nearby village of Buri, 15 kilometers (10 miles) south of Manama, it added.
Bahrain's interior minister, Sheikh Rashid bin Abdullah Al Khalifa, said Saturday's blast was "the latest example of a terrorist act performed by terrorists in direct contact with and under instruction from Iran".
Bahrain relies on the Abu Safa field, which it shares with neighboring Saudi Arabia, for much of its oil, pumped in via a 230,000-barrel-per-day pipeline.
Iranian authorities have not yet responded to the comments of the Bahraini interior minister.
The UAE on Saturday condemned the terrorist explosion and expressed its solidarity with the kingdom..
However, that campaign of bombings and shootings had not seen the island's oil infrastructure targeted, even immediately after Emirati and Saudi forces helped Bahrain put down its 2011 Arab Spring protests. It has faced increasing financial pressure in recent years.