The physical nation of Israel is no longer a favored nation, it lost that status in the 1st century.
The nation of Israel are the followers of Jesus:
(1 Pet 2:9 KJV) But ye are a chosen generation, a royal priesthood,
an holy nation, a
peculiar people; that ye should show forth the praises of him who hath called you out of darkness into his marvellous light:
Peter has taken the status from old covenant "Israel" and applied it to Christ's people consisting of believers from all nations:
(Deu 14:2 KJV) For thou art an
holy people unto the LORD thy God, and the LORD hath chosen thee to be a
peculiar people unto himself, above all the nations that are upon the earth.
Only the Seventh Day disAdvantaged cling to the outdated historicist view.