Oops, 1. is meant to say “Do Catholics believe that the reestablishment of Israel as a nation in 1948 fulfilled Biblical prophecy?” Sorry about that. I was tired and made a stupid typo.
Definitively, no, although, it seems to suggest that we are beginning the “times of the Gentiles”, as the prophecy in Luke says. But the first “times of the Gentiles” is not the very end of the world, but the FULLNESS of the Gentiles, that is, it heralds the time when the full number of Gentiles shall come into the Church.
In Catholic Prophecy, it seems that we are the verge of this. What remains in Church history, according to the best estimates of fully approved private revelation, is a conditional Minor Chastisement, that shall lead to the near total reunion of Christians (which is a sort of type of the return of the Jews from the foreign lands to their home, that is, the return of the various foreign spiritual kingdoms to their home, the Catholic Church), which, as Christians become “one”, so Jesus’ prayer that the world is “able to believe” is fulfilled, meaning the near totality of the Gentiles shall enter the Church, a glorious age of peace, the true “Millennium”.
But as for the full conversion of the Jews, we know that must wait until the great apostasy. Hence, even after the Gentiles are gloriously restored to the Spiritual Promised Land, the Catholic Church, in fulfillment of the restoration of the Jews to the Home land after the exile in the OT, the Jews will fail to recognize the Gentiles fullfilling of their history. THey will stand outside the house of the father and protest the celebration of the prodigal son’s return.
But when the third and final darkness of the Gentile history comes, the great apostasy and NT AC, the Jews will see that he is simply the fulfillment of the OT AC, Antiochus, and so as the Gentiles’ eyes are forever closed to the whole truth, they that had received only part of it, and for the three days had failed to find the fullness, shall rejoice when they are able to accept the whole of it, having seen their three great spiritual ages fulfilled by the New Covenant, at which point they finally find Jesus sitting in the Temple, the Church, and He shall respond, “Did you not know I must be about my Father’s business?”