It is unclear if you can recognize “Palestine” and “Israel” since Palestine’s borders include all of the territory claimed by the Medinah. Also parts of Eretz Yisrael are probably also in Syria and Egypt (depending on whose views you hold by – it matters in terms of shmittah and holding 2nd day yuntuf).
Note the the word “sovereign” refers to a country (originally a king) being higher than any other king or state, including supremacy over any diety. Thus the concept of being “sovereign” is probably unacceptable to Jews, and Muslims, and anyone else who believes the creator of the world exercises any supervisory function over the world. According to Rashi, Ha-Shem is “sovereign” over the world, including Eretz Yisrael, and allows Jews to have rights there.