The Iron Dome is an Israeli missile defence system, which launches rockets to intercept those from enemies.
The Daily Telegraph reports the system is designed to operate at short distances with each interceptor costing £25,000. The cost of three of the four batteries currently in operation is estimated at £1.3m each.
The system can detect enemy missiles due to land in open spaces and will ignore them, while intercepting those heading towards populated areas.
Today's bombing in Tel Aviv is reminiscent of six years ago and could mark a serious escalation in the conflict.
A truce in Gaza suits all sides but none of the groups seem interested in a long-lasting solution.
A complex system of air defences has been instrumental in protecting Israel's population from incoming rockets.