Israel carried out a missile test on Jan. 17, its Defense Ministry said, raising speculation the launch was part of a program to develop longer-range weapons that could act as a deterrent against Iran.

According to Israel Radio the missile tested was capable of carrying an "unconventional payload." It quoted unidentified foreign reports as saying Israel was developing the Jericho III long-range surface-to-surface missile. It was reported that Israel has carried out tests to improve anti-missile systems to intercept both short- and medium-range rockets, including Katyusha rockets used by Hezbollah guerrillas in Lebanon and missiles in Iran's arsenal.

On Jan. 14, Israeli Prime Minister Ehud Olmert said that Israel would consider all options to prevent Iran from developing nuclear weapons.
Israel is believed to have atomic arms, and foreign analysts have said for many years that its Jericho I and Jericho II missiles can carry nuclear warheads. The Jericho missiles is said to be a variant of the civilian Shavit missile that Israel uses to launch satellites into space.

Israel believes Iran could have a nuclear bomb by 2010 and says an Iranian nuclear weapon would threaten the existence of the Jewish state.
Iran denies seeking nuclear weapons and says it is enriching uranium only for use in generating electricity.

Israeli Defense Minister Ehud Barak said during a visit to Washington last year that the Jewish state was working on a joint U.S.-Israeli system for countering ballistic threats.

He said the project's lowest tier, Iron Dome, was near completion and the first trials could be carried out within two and one-half years.

Developed by Israeli arms firm Rafael, Iron Dome is billed as the most effective answer to the crude rockets favored by Palestinian militants.
The next tier of the layered anti-missile system is David's Sling that would tackle medium-range rockets such as those fired by Hezbollah guerrillas at Israel during the 2006 Lebanon war.

Barak said David's Sling, a joint Israeli-U.S. initiative, would take a little more time than Iron Dome to reach trials.

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