Eilat residents panicked Tuesday morning following a series of explosions that also sent Israeli forces scrambling to find the source of the blasts.
The Israeli army initially presumed that a rocket attack had occurred in the area.
Initial reports said three Grad rockets were fired at the resort town. They claimed two of the rockets were intercepted by the Iron Dome while the third one exploded in an open area.
However, the army later claimed that the attacks were really a false alarm caused by an error at the Iron Dome site near the city.
An army spokesperson said the explosions were caused by two Iron Dome anti-missile projectiles accidentally fired at around 7:30 a.m. (0530 GMT).
There were no immediate reports of casualties from the incident.
Israeli media reports said an airplane preparing to land in the city was also forced to circle during the false alarm until the incident was resolved.
Eilat, which sits just a few kilometers from the border with Egypt, is sporadically targeted by militants in the Sinai region.
The Iron Dome has been established with the financial support of the United States. In May, 2012, the US House of Representatives appropriated 947 million dollars to the Iron Dome, nicknamed “David's Sling,” and a long-range Arrow missile program in Israel.
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