Israel and the United States have signed an agreement to make the Arrow II ballistic shield capable of shooting down missiles at a higher altitude, the Israeli Defence Ministry said on Sunday.

The Arrow III will allow Israel to deal with the threat of ballistic missiles with long range and will give it the ability to shoot down weapons of mass destruction outside the atmosphere, the ministry said in a statement.

Israel says sees Iran "a threat".

However, Israel, most experts estimate that it has at least between 100 and 200 nuclear warheads, often threatens the Islamic republic with an attack.

The Arrow is jointly produced by state-owned Israel Aerospace Industries and the American firm Boeing Co. and has absorbed close to $1 billion in direct U.S. funds since its 1988 inception.

Agencies


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