Israel faces a critical missile defence dilemma as Iran’s use of cluster warheads complicates interception strategies and strains interceptor supplies. Reports suggest Israeli planners are weighing whether to rely more heavily on the high-cost Arrow-3 system, capable of destroying missiles outside the atmosphere before submunitions disperse, or conserve stockpiles for prolonged conflict. While lower-altitude systems offer cheaper interception, they risk allowing bomblets to reach the ground. With Iran reportedly expanding its missile arsenal and deploying more complex payloads, Israel’s layered defence network is under mounting pressure, forcing difficult decisions on when—and how—to deploy its most advanced interceptors.