ASSOCIATED PRESS-- Foreign Ministry spokesman Bahram Ghasemi was quoted by IRNA news agency Sunday as rejecting the "baseless and fake claims" and "childish finger-pointing" from Bahraini authorities.
Bahrain has been combatting a low-level insurgency since the Sunni monarchy quashed a 2011 Arab Spring uprising led by majority Shias.
Bahrain's interior minister, Sheikh Rashid bin Abdullah Al Khalifa, accused Iran about Saturday's blast.
Persian Gulf tensions have intensified in recent days after Sunni-led Saudi Arabia blamed Iran for a ballistic missile fired by Yemen's Houthis that was intercepted near Riyadh. Iran has denied any involvement.