Bahrain Police Secure Roundabout; Curfew Coming

Bahrain police secured the iconic Pearl Roundabout and the government is back in control of the area, ousting protestors earlier Wednesday, CNBC has learned.

In addition, the Bahrain Defense Force (BDF) plans to impose a curfew on certain areas and evacuate areas, according to an announcement on Bahrain TV.

The measures the BDF plan to implement are to:

• Impose curfews in certain times and areas
• Evacuate certain areas
• Forbid gatherings that undermine public order
• Impose restrictions on access of certain areas or exit areas
• Inspect and detain suspects.

"The BDF urges full cooperation of citizens and residents to abide by these measures," the announcement said.

Protestors in the roundabout are "all gone," sources told CNBC.  Saudi tanks had control of all bridges, which were either closed or "secured."

Earlier, shots were heard on the ground and a huge plume of black smoke rose near the area.

Tear gas was also used and both military and police were at the site. The military positioned itself to the north of the square with tanks, armored vehicles and bulldozers. Security forces in riot gear were seen securing the roundabout. 

Earlier, up to 50 military tanks, heavy armored vehicles, several military helicopters and ambulances headed in the direction of the square, which has become a center for protests against the monarchy and the government.

The military brought bulldozers to clear the roundabout. The big Caterpillar bulldozers were carried on trailers behind trucks.

Government sources had told CNBC the operation would be over within hours and the airport road was closed. 

The Bahrain military wants to secure the country's capital, clearing the Pearl Roundabout where protests have been held since mid-February. It also aims to secure government buildings, sources in the country told CNBC. 

Bahrain's King Hamad al-Khalifa called for a three-month period of "national safety" Tuesday, as protestors continued to clash with security forces throughout mostly Shiite areas of the country.

This just one day after Saudi-led forces entered Bahrain as part of a broader Gulf Cooperation Council coalition invited by the al-Khalifa's to restore order and security to the country. 

The decree amounts to martial law, with businesses closing and moving employees either back to their country of origin or to Dubai. The U.S. embassy in Bahrain has advised all U.S. citizens to limit their movements and to leave home only for essential purposes.

Bahrain has been gripped by its worst unrest since the 1990s after protesters took to the streets last month, inspired by uprisings that toppled the leaders of Egypt and Tunisia.

Unlike those countries, where the mainly Sunni populations united against the regime, Bahrain is split along sectarian lines, raising the risk of a slide into civil conflict.

Over 60 percent of Bahrainis are Shi'ites who complain of discrimination at the hands of the Sunni royal family. Calls for the overthrow of the monarchy have alarmed the Sunni minority, which fears that unrest could serve non-Arab Shi'ite power Iran.

Iran, which sits across the Gulf from Bahrain, sharply criticized the decision to send in Saudi troops.

The United States, a close ally of both Bahrain and Saudi, said it was concerned about reports of growing sectarianism in the country, which is home to the U.S. Navy's Fifth Fleet, and called for political dialogue to resolve the crisis.

"One thing is clear, there is no military solution to the problems in Bahrain," said White House spokesman Tommy Vietor.

Bahrain asked the Gulf Cooperation Council to lend its support for policing purposes earlier this week; the government says the GCC force is only in the country to protect vital infrastructure such as oil, electricity and water buildings. 

At least two people are believed to have died as civilians clashed with armed militias in the Sitra area of Bahrain. Witnesses told CNBC that violence began Tuesday afternoon as militias brandishing knives, clubs and even guns opened fire in the mostly Shiite area, destroying shops and attacking people seemingly at random. 

Guns are banned in Bahrain, leading many residents to speculate that the militias were in fact plain clothes security forces. Sources at the Royal Court rebutted such speculation, however, saying that anti-government protestors are armed and that the fighting has been between civilians only. 

A banker who asked not to be identified said he feels the royal family and the government have clearly lost control, citing the Gulf Cooperation Council forces that were called in on Monday. He also said Bahrain's crown prince squandered the government's opportunity for a dialogue, failing to bring opposition parties to the table to start talks quickly.

Bahrain is expected to see its gross domestic product contract this year, partly as a result of the disruptions caused by protests.