What Jesus did was to expand the definition of Israel to all who are in relationship with Him, “first for the Jew, then for the Gentile” (Romans 1:16, see also Mark 7:27 and John 10:16; 12:20-24). The mission of Israel would now fall on the followers of Jesus, who would come “from every tribe and language and people and nation” (Rev 5:9). When Paul and Barnabas read God’s Old Testament promises to Israel, they read those promises typologically in Jesus Christ. So they could apply Isaiah 49 also to themselves. “I have made you a light for the Gentiles, that you may bring salvation to the ends of the earth” (Acts 13:47, quoting Isaiah 49:6). As part of the new Israel in Christ, Paul and Barnabas applied Israel’s promises to their mission to the Gentiles. Since the church had taken up the mantle of Israel, all the promises of God to Israel now applied to the church, but in a spiritual, worldwide sense, as we will see.
Through this re-definition in Christ, two very important things happened to the meaning of Israel. First, Israel was no longer primarily defined as a civil, geographical entity. The followers of Jesus would come to include people from every nation, language, and tribe. Thus, Israel took on the spiritual tone that was intended for it from the beginning. It would now be made up of those who had a heart relationship with God in Jesus Christ. In Christ, Israel became a new community, with no ethnic limitations. The blessing that had now come to the Gentiles in Christ would go out to both Jew and Gentile from henceforth.
Second, institutional Israel was geographically centered around the temple in Jerusalem. No matter where a Jew might be displaced around the world, it was the goal to visit Jerusalem and the temple, if possible, three times a year. For Old Testament Israel, God’s Shekinah glory was housed in the temple. The emblems of God’s presence were localized in a specific geographic place. So national, institutional Israel was both ethnic and geographical in nature. By way of contrast, the new Israel was spiritual (grounded in a living relationship with the Jewish Messiah and unlimited in its ethnicity) and worldwide (Christ is equally available in any place through the Holy Spirit).
Jesus affirms the above in John, chapter 4. When the woman of Samaria sought to engage him in a discussion as to whether Mount Gerizim or Jerusalem was the right place to find God, Jesus responded, “. . . the hour is coming, and now is, when the true worshipers will worship the Father in spirit and truth” (John 4:23). The worship of the new Israel is spiritual and worldwide (as God had always intended OT worship to be) because it is based on the truth that is in Jesus. Jesus Himself is the true Israel and all who are in relationship with Him (regardless of their ethnicity or location in this world) are also part of that true Israel.
This is confirmed also in Revelation 5:9-10: “And they sang a new song: ‘You are worthy to take the scroll and to open its seals, because you were slain, and with your blood you purchased men for God from every tribe and language and people and nation. You have made them to be a kingdom and priests to serve our God, and they will reign on the earth.’”
The “kingdom and priests” of this text echos Exodus 19:5-6. But Israel in Revelation is no longer the literal descendants of Jacob being gathered into the promised land of Israel. Through the blood of the Lamb, God has gathered them out from every corner of the earth (anticipated in Isaiah 66:19-20). They are a spiritual kingdom, in relation to the Lamb. And they are a worldwide kingdom, drawn from every nation. Israel has been re-defined. In the hands of the New Testament writers, the literal and local things of Israel have become spiritual and worldwide.