Israel's Arrow missile defense system was designed to intercept Scud missiles with a range of 300-400 kilometers. After it became clear that the Iranians -- with aid from North Korea and China -- are increasing the range of their missiles, Israel was forced to regroup and cope with the new reality, leading to the development of the Arrow 2 System. But it's not working out so well. Ha'aretz says that after a missile test failed to reach even the direction of its target on Wednesday night, Israel must develop a better way to defend itself against an attack from Iran, whose Shihab 3 missile's range exceeds 1,000 kilometers -- more than enough to reach Israel.

It gets worse:

"Iran is about to incorporate a missile with a range of 2,000 kilometers into its arsenal. Not coincidentally, even though there has been little media attention on the subject, Israel is mulling the purchase of the U.S.-made THAAD missile defense, which is still in the development phase. ... This mishap will be thoroughly examined in Iran. There is no doubt that Tehran's director of its missile program will be rubbing his hands with satisfaction. Beyond the technical glitch, this failure is also a psychological blow for Israel and the U.S, its partner in the project."

Oh, and it doesn't help that Israel, at least in public, is calling all of this a "partial success" for its missile defense strategy. 

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