Thousands of people calling for political reform have spent the night on the main square in Bahrain`s capital of Manama, regional media said on Wednesday, according to RIA Novosti.

Violent clashes on Monday and Tuesday left at least two demonstrators dead. About 25 people were also injured on Tuesday as Egypt-inspired protests continued in the outskirts of the Bahraini capital.

Tensions escalated as thousands gathered for the funeral procession of Ali Abdulhadi Mushaima, 27, who died on Monday during protests after being reportedly shot at close range in the back with birdshot.

Bahrain, a strategic U.S. ally and home to the U.S. Navy`s 5th Fleet, is ruled by a Sunni monarch. About 75% of its population are Shiites who complain about discrimination by the ruling Sunni minority.