"For he himself is our peace, who has made the two one and has destroyed the barrier, the dividing wall of hostility, by abolishing in his flesh the law with its commandments and regulations.
His purpose was to create in himself one new man (body of Christ) out of the two, thus making peace, by which he put to death their hostility." (Eph 2:14-16)
His death on the cross created peace (reconciliation)
1) between Jew and Gentile, by abolishing the source of their hostility in the defilement laws, and making them into one new man, the body of Christ, and
2) between God and the one body of Jews and Gentiles (mankind), by forgiveness of their sin through faith his propitiating sacrifice (Ro 3:25), which gave them right standing (not quilty) before God.
His purpose was to create in himself one new man out of the two (Eph 2:15),
and then reconcile the one new man to God. (Eph 2:16)