Australia’s government announced the decision on Saturday, reversing decades of Middle East policy, but said it would not immediately move its embassy there.
The United States in May opened its embassy in Jerusalem.
The Arab League had issued a statement criticizing the Australian decision as “blatantly biased towards the positions and policies of the Israeli occupation”.
But Bahraini minister Sheikh Khalid bin Ahmed al-Khalifa described the statement as “mere rhetoric and irresponsible”.
“Australia’s stance does not impact the legitimate Palestinian demands, first among them being East Jerusalem as the capital of Palestine, and it does not contradict the Arab Peace Initiative,” he tweeted on Saturday, Reuters reported.
Sheikh Khalid has previously said Israel had the right to defend itself against Iran.
Israel Prime Minister Benjamin Netanyahu has on several occasions hinted at warmer relations with Persian Gulf Arab states and made a surprise visit to Oman in October to meet with its ruler Sultan Qaboos bin Said.
Israel has diplomatic relations with only two Arab states, Egypt and Jordan.