In a statement issued at the end of a meeting in Riyadh, the ministers of the Arab states of the Gulf expressed "condemnation of the provocative and irresponsible statements, and acts of aggression by the Iranian regime towards the kingdom of Bahrain".
They also deplored Tehran's "support to terrorist gangs" and accused it of "fueling sectarian strife to harm national unity in the kingdom".
The ministerial council urged Iran to "abandon politics that lead to nourishing sectarian and confessional conflicts, and to stop forming and supporting groups and militias that fuel these conflicts in Arab states".
Bahrain frequently claims busting terror cells formed by members of its majority Shiite majority. Many have been tried and jailed over charges of belonging to such groups.
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The tiny kingdom has seen sporadic protests and clashes since security forces quelled Shiite-led protests in 2011 that demanded political reforms.
Bahrain is strongly backed by neighbouring Saudi Arabia, the Sunni heavyweight and regional rival of Shiite Iran.
The two countries are at odds in the Syrian conflict, where Iran supports the regime of President Bashar al-Assad while Riyadh backs the opposition.