1. Yes and no in that it is leading to the fulfillment of key "end time" (more like the end of human rule) prophecies.
"I am going to make Jerusalem a cup that sends all the surrounding peoples reeling. Judah will be besieged as well as Jerusalem. On that day, when all the nations of the earth are gathered against her, I will make Jerusalem an immovable rock for all the nations. All who try to move it will injure themselves.
- Zechariah 12:2-3
These things will ultimately occur when those who have the hardest of hearts (towards G-d) are in power in every nation. It is believed these things will happen only after G-d has revealed His power, love and reality to all the world.
2. G-d is not only pro-Israeli but also pro-Palestinian Arab. G-d wants to protect His chosen people, Israel and allow the Palestinian Arabs the chance to know Him, Jesus Christ