Israel's Defense Ministry on Sunday announced the completion of work to upgrade Arrow, an anti- ballistic defense system that comprises the upper tier of the country's missile defenses.

The upgrade project, dubbed "Block 4," included a host of improvements to the Arrow-2, a system designed to intercept long- range ballistic missiles that has been operational in the Israel Air Force since the mid 1990s, a ministry official told the Ha' aretz daily Sunday.

Primarily designed to defend against ballistic threats such as Iran's Shahab, the system's software, sensors and radar were upgraded to enable it to shoot down medium-range missiles and rockets, such as advanced M600 rockets used bySyriaand Hezbollah, the official said.

Providing only scant details, the official said the system's maximal range was also improved.

The announcement came a day after Iranian Defense Minister Brig. Gen. Ahmad Vahidi revealed that his country's military successfully test-fired the fourth generation of Fateh 110, a solid-fuel surface-to-surface missile, whose new version is said to feature increased accuracy and a range of 300 km.

"With the fourth-generation... the armed forces of our country are able to target and destroy land and sea targets, enemy headquarters... missile and ammunition sites, radars and other points," the sem-official Fars News Agency quoted Vahidi as saying on Saturday.

While Israel is not within the new missile's striking range, it could potentially threaten Iran's neighbors and American military assets in the Persian Gulf, including commercial shipping in the Strait of Hormuz, where tensions have been running high over the past year.

"The test firing of the missile is most likely to be a warning to the West and Iran's Persian Gulf neighbors that Iran, too, can escalate the level of tensions in the area," Meir Javedanfar, an Israeli expert on Iran, told The Jerusalem Post Sunday.

Vahidi, however, claimed that the missile was a defensive weapon that "would only be used against aggressors and those who threaten the country's interests and territorial integrity."

Lebanese Shiite armed group Hezbollah has reportedly stockpiled hundreds of M600 rockets, which are said to be nearly identical to the Fateh 110. Rocket battalions in the Syrian army store an undisclosed number of M600s, a weapon with an estimated range of 300 km.

With regional threats on the rise, Israel is allocating greater resources and efforts to bolstering its missile defenses. The United States is underwriting the development of Arrow-3, which is scheduled to become operational within a few years.

Last week, Israeli media reported that the Air Force is slated to receive another two batteries of the Iron Dome anti-rocket defense system early next year. Both have been outfitted with software that enables interception at extended ranges.

On Thursday, a senior officer revealed that the Air Force is readying to take delivery of Magic Wand, another system designed to shoot down short and medium-range projectiles that Israel is developing with U.S. defense giant Raytheon.

The officer underscored that the gamut of systems, which pack state-of-the-art technology, are not impenetrable.

"Despite having a system whose name includes the word magic, we don't promise magic. It must be understood that there is no, and never will be, hermetic protection," he said.