Originally posted by the Voice of America. Voice of America content is produced by the Voice of America, a United States federal government-sponsored entity, and is in the public domain. Israel Shells Gaza Following School Bus Strike VOA News April 07, 2011 Palestinian Abdullah Fatouh inspects the damage next to his family's pickle factory after an overnight Israeli airstrike east of Gaza City, Apr 7 2011 Photo: AP/Israel Leal Palestinian Abdullah Fatouh inspects the damage next to his family's pickle factory after an overnight Israeli airstrike east of Gaza City, Apr 7 2011 Israeli troops have shelled targets in the Hamas-ruled Gaza Strip, after suspected Gaza militants fired a projectile that hit a school bus in southern Israel, wounding two people. Palestinian medics say the Israeli retaliation killed an elderly man and wounded at least three other people. Israeli Defense Minister Ehud Barak had ordered a swift response for the bus strike. Western news agencies say that during Thursday's cross-border incidents, Israel employed what is believed to be its first use of a new short-range missile defense system, known as "Iron Dome." Witnesses say an Israeli missile intercepted a Gaza-fired rocket that appeared to be aimed at the Israeli city of Ashkelon. In March, the Israeli government announced it had decided to deploy the "Iron Dome" system in response to an increase in mortar and rocket fire from Gaza into southern Israel. The system is said to be capable of shooting down rockets fired from a range of five to 70 kilometers. Earlier Thursday, the Israeli military said it had carried out several overnight airstrikes in Gaza, targeting smuggling tunnels near the border with Egypt. Palestinian medical sources said at least one person was wounded. Shelling between Israel and Gaza has raised tensions between at a time when Israeli-Palestinian peace talks have stalled. Talks broke off following Palestinian objections to continued Jewish settlement building. Palestinians oppose construction on land they want as part of a future state. Meanwhile, the World Bank says the Palestinian Authority is well positioned to establish an independent state, but that Israeli restrictions are stifling prospects for sustained economic growth. In a report published Thursday, the bank praised Palestinians' progress in delivering public services and institution-building. The World Bank also expressed concern about the staggering 37.4 percent unemployment rate in the Gaza Strip. Separately, Palestinians say Israeli security forces raided the West Bank village of Awarta early Thursday and arrested more than 100 women during a house-to-house search for suspects in the killing of a Jewish couple and their three children in March. Some information for this report was provided by AFP and Reuters. Follow our Middle East reports on [1]Twitter and discuss them on our [2]Facebook page. References 1. http://twitter.com/VOAMidEast 2. http://www.facebook.com/pages/VOAMiddleEastVoices/124360240958667?%20%20%20%20v=wall .