Iron Bars

Iron Bars were added in the 1.8 "Adventure" update. They are a type of block that seems to occur naturally in strongholds and in NPC Villages. They serve a similar purpose to fences.

The iron bars can be placed in much the same way as fences or a Glass Pane.

History
On July 11th 2011, Notch revealed two new screenshots of a stronghold (in two different brightness settings) where the bars can be clearly seen alongside other common stronghold blocks. The lighting differences have been explained a bit (though not necessarily completely correct) by a user on the forums. .

Trivia

 * A 2x2 area made of the Iron bars can make a hole big enough for the player to fit through, but not rain, water, etc. this can be used as an easy entrance for an underwater house, but not an exit. Glass Panes work similarly.
 * If a sign or a painting is placed on the iron bars, it appears to float in the air.

Bugs
++ being one block of iron bars
 * The iron bars do not connect to sticky pistons like they do with the walls.
 * |being a wall block / piston

instead of | |++++| |    you get   | | ++ | | this      | |++++| |     this      | | ++ | | | |++++| |              | | ++ | |

regular block             pistons

This makes it difficult to make castle gates that are functional and look right.
 * When there isn't a block in one of the sides of the Iron Bar, it will be pushed into into the opposite direction. This also happens with glass pane.