In a joint statement, the United States, Bahrain, and Israel said that a normalization agreement has been reached, between the two Middle Eastern countries. The agreement was concluded after President Trump spoke with Israeli Prime Minister Benjamin Netanyahu and Bahrain’s King Hamad bin Isa Al Khalifa on Friday.

This agreement comes on the heels of the one signed between Israel and the United Arab Emirates (U.A.E.) just a month ago.

The U.A.E. welcomed the decision by Bahrain and Israel to establish relations, saying that it hoped it would have a positive effect on peace and cooperation in the region and around the world.

Trump hailed the deal as “a historic breakthrough.” “Now that the ice has been broken, I expect more Arab and Muslim countries will follow the United Arab Emirates’ lead.” President Trump said.

The agreement is significant because this is the first time Bahrain has formalized relations with Israel. This historic agreement to establish diplomatic ties could be a massive turn of events throughout the region and a significant step forward for both Israel and Bahrain: It further enhances the two countries’ security while creating opportunities for them to deepen their economic ties. According to the White House, the countries have committed to the exchange of embassies and ambassadors. They will also begin cooperation in a broad range of fields, including education, healthcare, trade, and security.

Israel is now working toward the opening of an Israeli embassy in Bahrain.

As more countries normalize relations with Israel, the region will become more stable, secure, and prosperous. Expanded business and financial ties between economies will accelerate growth and economic opportunity across the region. President Trump is credited for ultimately brokering the deal.

The Palestinian Authority (PA) condemned the Bahrain-Israel normalization deal as another betrayal by an Arab state. The agreement was “a stab in the back of the Palestinian cause and the Palestinian people,” Ahmad Majdalani, social affairs minister in the occupied West Bank-based PA, told AFP.