[1] At the beginning of the nineteenth century, Britain, then the dominant power in the region, was attempting to end piracy in the Persian Gulf to secure maritime trading routes to its East India Company in the Indies.

[3] In 1816, the British Political Resident,[n 1] William Bruce signed an unofficial agreement with Al Khalifa in which Britain was to remain neutral in the war between Oman and Bahrain.

[5] In 1820, Britain signed the General Maritime Treaty with tribal chiefs of the Persian Gulf, including Al Khalifa (at their request[6]).

[5] Between 1820 and 1850, Al Khalifa repeatedly tried to persuade British authorities to provide full protection to Bahrain against external threats, but without avail.

The situation changed in 1859–60, when the Khalifa ruler appealed to the Persians and Ottomans to provide protection, and in 1861 blockaded Al-Hasa, a coastal oasis in Eastern Arabia.

After two years, in 1869, they intervened again to end an internal struggle over power, and appointed Shaikh Isa ibn Ali Al Khalifa, then aged 21 as ruler of Bahrain.

In subsequent years, the British exercised increasing control over Shaikh Isa's communications with foreign powers, especially the Ottomans, which had claims over Bahrain and Qatar.

They also prevented Shaikh Isa from defending Zubarah, a center of trade and pearl fishing sited midway between the Strait of Hormuz and the west arm of the Gulf, against a land attack, in order to avoid a confrontation with the Ottomans, who supported the Al-Abdulla (a branch of Al Khalifa which had been banished from Bahrain after a feud over power[12]).

[21] In 1903, Lord Curzon, the Viceroy of India, visited Bahrain and highlighted the need to reform the customs – which were in a state of chaos – by appointing a British director.

[29] On 29 September, followers of Ali ibn Ahmed Al Khalifa, a nephew of Shaikh Isa, attacked clerks working for a German trading firm.

[31][32] Fearing that these incidents would allow foreign powers to "gain an opening for assailing [the British] regime", Major Percy Cox, the Acting Political Resident in the Persian Gulf visited Bahrain in a navy fleet on 30 November.

Cox demanded deporting Ali, compensating the Persians, prohibiting forced labour of foreigners, and adhering to advisories from the British Political Agent.

[34] Shaikh Isa agreed to the demands on 26 February, after Cox had fired a few blank shots on the major port city of Manama.

In April, the British further extended their jurisdiction to include Jews and native Christians after the former group complained of harassment over taxes by Shaikh Isa.

At the same time, the term "foreigner" lacked a precise definition; both Shaikh Isa and the British claimed non-Bahraini Arabs and native-born Baharnah as their subjects.

Instead, Prideaux proposed that reforms be focused on "ending local tyranny" in the form of forced labour, and judicial and financial corruption.

British officials thought that by 1908 Shaikh Isa would be forced to accept reforms in the customs due to the expiration of Banyan merchants contracts.

[46][n 8] On 14 November 1907, the Government of India requested issuing an Order in Council for Bahrain in light of the growing British jurisdiction over foreigners.

The report was approved in February 1909 and in addition to its recommendations, the Government of India was tasked on May with preparing a draft for the Order in Council.

[63] The situation within Bahrain was calm,[62] but the economic times were very hard; the customs income decreased by 80%, 5,000 died due to plague in Manama and in the capital Muharraq, and many others emigrated.

Many were brought to the "brink of famine" due to India's ban on exporting rice and the subsequent increase in the price of staple commodities.

Shaikh Isa responded in 1917 by borrowing from merchants, increasing the customs tax and dispossessing the Shia Muslims, who were now the only non-Sunni group which did not enjoy British protection.

[44] Following the end of the war, Persian media launched a campaign calling for a stop to the oppressive policies against their co-religious Shia.

[65] The main British naval base in the Persian Gulf region was moved to Bahrain in 1935 shortly after the start of large-scale oil production.

In the same year, the United Nations reported that "the Bahrainis were virtually unanimous in wanting a fully independent sovereign state.