The Shiite-Sunni unrest in Bahrain might turn out to have graver consequences than the situation in Libya, EU officials have said.

"What is happening in Bahrain is Sunni versus Shia, Saudi Arabia versus Iran. It's big powers facing off against each other in a small place. It's really explosive. We share the same concerns with the US and with Russia," an anonymous EU source told EUobserver Wednesday.

"If Saudi Arabia and Iran become openly involved, it could become much more dangerous than Libya," another EU official claimed before the website.

On Thursday, Hassan Mushaima, a key oppositional politician and a Shiite, was arrested in Manama, the New York Times reported. On Wednesday, hundreds of Bahraini troops cracked down on a central square of reform-seeking protesters.

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