Bahrain's interior minister, Sheikh Rashid bin Abdullah Al Khalifa, said in a statement that the blast was "the latest example of a terrorist act performed by terrorists in direct contact with, and under instruction from, Iran".
Bahrain's Interior Ministry made the announcement on Saturday afternoon, alleging that Iran was in communication and guiding those responsible for the pipeline explosion and other attacks.
As a result of the fire in Bahrain, none was injured when the country's main oil pipeline caught fire.
Coordination between the General Directorate of Civil Defence and the Bahrain Petroleum Company (Bapco) stopped the flow of oil through the affected pipeline immediately following notification of the incident, said the state news agency.
The explosion damaged cars and nearby buildings, forcing firefighters to evacuate those close to the flames in Buri, just outside of the capital, Manama.More news: New details emerge in Chiefs player domestic battery case
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.
"It seems the only thing that Bahraini officials have learned to do after any incident in the island is pinning the blame on Iran", Qassemi said in a statement on Sunday.
Authorities have since tightened their grip on dissent, jailing hundreds of protesters and stripping a string of high-profile activists and clerics of citizenship.
Iran denied any involvement in that attack.
Bahrain is home to the US Navy's Fifth Fleet and a British army base is now under construction.