Bahrain will not allow the import of Israeli goods produced in settlements in occupied Palestinian territory, state news agency BNA reported, disavowing comments made by the Gulf state's trade minister.
Bahrain's Industry, Commerce and Tourism Minister Zayed bin Rashid Al Zayani had said on Thursday that Manama would make no distinction between products made in Israel and those produced in the occupied West Bank and Golan Heights.
"The minister's statement was misinterpreted and the ministry is committed to the Bahraini government's unwavering stance regarding adherence to the resolutions of the United Nations," BNA said late on Friday, quoting an official source from the Ministry of Industry, Commerce and Tourism.
Palestinian Foreign Minister Riyad Al Maliki said his Bahraini counterpart, Abdullatif Al Zayani, also denied the industry minister's comments in a phone call.
"The alleged comments ... totally contradicted his country’s supportive position of the Palestinian cause," a statement from Mr Al Maliki's office said.
Bahrain and the UAE are opening business, travel and security ties with Israel after agreeing to normalise relations earlier this year under the Abraham Accords brokered by US President Donald Trump.
The Bahraini foreign minister said on Saturday that the accords have "potentially game-changing implications" for the region.
"It is essential to not lose the momentum we have to build and overcome obstacles," Mr Al Zayani said at the annual Manama Dialogue security conference on Saturday.
However, Bahrain’s stance on the Israeli-Palestinian issue was clear, he said.
“We are with the two-state solution envisioned in the Arab peace initiative."
Under European Union guidelines, Israeli products made in the occupied West Bank should be clearly labelled as such when exported to member countries. The Trump administration last month removed US Customs distinctions between goods made within Israel and in settlements.
Palestinians want to establish an independent state in the West Bank and Gaza with East Jerusalem as its capital, but the issue of Jewish settlements on land captured by Israel in 1967 has long been a stumbling block in the peace process, which is now in stalemate.