The suspension of Al-Wasat's online operations followed a spike in anti-government protests led by the country's Shiite majority that began Saturday. The demonstrations accelerated after three men convicted of a deadly bombing targeting police were put to death yesterday.
Opposition activists allege that the condemned men were tortured and see their executions, the first since 2010, as inflammatory and politically motivated.
Bahrain's Information Affairs Authority issued an edict barring Al-Wasat from publishing online this evening and said the ban would remain in place until further notice. The ban did not appear to affect the print edition of the paper.
The paper's editor in chief, Mansoor al-Jamri, suggested the decision had taken the paper by surprise.
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"We're trying to get information from the authorities on their points of concern," he said.
Al-Wasat is widely seen as the only independent newspaper in Bahrain. It has been ordered to shut twice since an Arab Spring-inspired uprising against the Sunni-led government erupted in 2011.
Bahrain's Interior Ministry said the blaze at the Northern City Hall appeared intentional and was contained by firefighters.
Bahrain hosts the US Navy's 5th Fleet and an under-construction British naval base.