Jerusalem (CNSNews.com) - Israel successfully tested a new rocket defense system that would not only protect southern and northern Israel against short -range rockets, but would also help give Israel a stronger position in dealing with groups like Hamas and Hezbollah, a missile expert said here on Monday.

Dubbed "Iron Dome," the $200 million system is intended to shoot down the military-grade Katyusha rockets used by Hezbollah as well as the homemade Kassams used by Hamas and other Palestinian groups in the Gaza Strip fired from a range of 0 to 40 kilometers (up to 24 miles).

It is expected to be operational in about a year, the Agence France-Presse news service reported.

Such a system could give Israel the option of engaging in political dialogue with its foes, escalating the situation militarily or doing nothing, said Uzi Rubin, former head of Israel's anti-ballistic missile program on Monday.

"Once it's in place, it's designed to shoot down Kassam and Katyusha rockets," Rubin told Cybercast News Service.

It would give a measure of defense to southern Israeli cities like Sderot and Ashkelon as well as districts in the north, Rubin said.

It would also give Israel a third option. Right now, Israel is faced with only two choices -- deal politically with its enemies or escalate the situation into a wider military operation, said Rubin.

With the defense system in place, Israel would be able to sustain rocket fire against its civilian population without the need to deal politically or to escalate the situation, he said.

Since the beginning of the year, more than 2,400 rockets and mortars have been launched at southern Israeli communities from the Gaza Strip, including at least 30 professionally manufactured, longer-range Grad rockets. In all of 2007, 2,540 projectiles were launched at Israel.

Three Israelis have been killed so far this year in rocket and mortar attacks on southern Israel. But the rain of rockets has left tens of thousands of Israelis terrorized by the near daily attacks.

On June 19, Israel entered into an Egyptian-brokered truce with Hamas in the Gaza Strip. Since then, 11 rockets and mortars have been launched at Israel, the army said on Monday.

Critics of the ceasefire said it would only be used by Hamas to build up its military arsenal for future use against Israel.

In 2006, Hezbollah launched some 4,000 rockets at northern Israel during the 34-day summer war, forcing about a million Israelis to either flee their homes or seek refuge in bomb shelters for weeks. Forty-three civilians were killed in those rocket attacks.

Iron Dome is part of a wider anti-missile, anti-rocket protection shield that includes Israel's Arrow II anti-ballistic missile system designed to intercept ballistic missiles launched from a distance of 300 kilometers (180 miles) or more -- such as those that could be launched by Iran or Syria.

Israel and the U.S. are also jointly working on a system called "David's Sling" that is intended to intercept Katyusha rockets launched from a distance of 40-200 kilometers (24-120 miles).

The Israeli daily Ha'aretz reported that the Defense Ministry said Rafael, Advanced Defense Systems LTD, that is developing the system, was working urgently to come up with a solution for the problem that the rockets present.

Rubin said in an earlier interview that Israel was slow to develop the system to defend against shorter-range rockets because it was assumed that the Israeli Air Force could deal with the threat.

See Earlier Story:
US-Israel Discuss Joint Anti-Missile Defense System (Oct. 17, 2007)