Daniel 2:1
"In the second year of his reign, Nebuchadnezzar had a series of dreams, he was perturbed by this and sleep deserted him."
So this means Daniel was already in the service of Nebuchadnezzar before any of the Jerusalem sieges.
Later:
At this, King Nebuchadnezzar fell prostrate before Daniel; he gave orders for Daniel to be offered an oblatin and a fragrant sacrifice. The king said to Daniel: "Your god is indeed the God of God, the Master of kings, and the Revealer of Mysteries..."
But Nebuchadnezzar goes off to besiege and capture Jerusalem and, eventually leveling it entirely, desecrates its temple. So why are we informed of his declaration. Either it was empty or it never occurred. When all of Daniel is read, you have to wonder if there is any historicity to it.
Question:
Is there any evidence that Babylonian kings were described as divine? Now how about Antiochus IV - Epiphanes?
Chapter II concludes with Shadrach, Meshach and AbedNego appointed to provincial rulers.
In chapter III, the King builds a golden statue of himself, confounding the lesson he supposedly learned in the previous chapter and threatens to burn the trio to death in an oven. In calling high officials to admire and worship the statue, he includes "Satraps" - a Persian Empire official ( an Empire yet to be invented). People "heard the sound of "horn, pipe, lyre, zither, harp, bagpipe and other instruments."
Strange? Not only he desecrate the temple of the God he acknowledged, but claims he himself is divine to boot amid anachronistic descriptions.
If you want to consider two empires encountering each other, study in detail how the Romans displace the Seleucids that ruled Palestine in the mid second century BC. Antiochus III ("the Great") was defeated by the Romans in Asia minor in 190 BC. Rolled back. The Greek mainland sought Rome's protection. The Romans spread around the Mediterranean and then (drawing from sources):
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...In 168 BC Antiochus IV Epiphanes led a second attack on Egypt and also sent a fleet to capture Cyprus. Before reaching Alexandria, his path was blocked by a single, old Roman ambassador named Gaius Popilliu Laenas, who delivered a message from the Roman Senate directing Antiochus to withdraw his armies from Egypt and Cyprus, or consider themselves in a state of war with the Roman Republic. Antiochus said he would discuss it with his council, whereupon the Roman envoy drew a line in the sand around him and said, "Before you cross this circle I want you to give me a reply for the Roman Senate" – implying that Rome would declare war if the King stepped out of the circle without committing to leave Egypt immediately. Weighing his options, Antiochus IV Epiphanes decided to withdraw. Only then did Popillius agree to shake hands with him.
While Antiochus was busy in Egypt, a rumor spread that he had been killed and The High Priest appointed by Antiochus, Menelaus, was forced to flee Jerusalem during a riot. On the King's return from Egypt in 167 BC enraged by his defeat, he attacked Jerusalem and restored Menelaus, then executed many Jews.
"When these happenings were reported to the king, thought that Judea was in revolt. Raging like a wild animal, he set out from Egypt and took Jerusalem by storm. He ordered his soldiers to cut down without mercy those whom they met and to slay those who took refuge in their houses. There was a massacre of young and old, a killing of women and children, a slaughter of virgins and infants. In the space of three days, eighty thousand were lost, forty thousand meeting a violent death, and the same number being sold into slavery." - 2 Maccabees 5:11-14
To consolidate his empire and strengthen his hold over the region, Antiochus decided to side with the Hellenized Jews by outlawing religious rites and traditions kept by observant Jews and by ordering the worship of Zeus as the supreme god (2 Maccabees 6:1–12). This was anathema to the Jews and when they refused, Antiochus sent an army to enforce his decree. Because of the resistance, the city was destroyed, many were slaughtered, and a military Greek citadel called the Acra was established...
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The book of Daniel is NOT history of Babylonia. For further evidence, compare Daniel Chapter 4 and Dead Sea Scroll 4Q242"The Healing of King Nabonidus".
"I Nabonidus wsa smitten with a severe inflammation lasting seven years ... I was thus changed becoming like a beast. I prayed to the Most High and he forgave my sins. An exorcist, a Jew, in fact, a member of the community of exiles, ..."
Daniel is un-named in the scroll, but Nabonidus is. As recounted by the editor of the DSS, "the name was changed not to protect the innocent, but to implicate guilty ... who had sacked Jerusalem, burned the Temple and carried the people into exile in 586 BCE." Repeat: 586 BCE.
Any resemblance here to Antiochus IV?
Curiously enough, events in chapter 5 pick up the Nabonidus story again, without using his name, when Cyrus acquires the city for the Persian Empire.
It seems to me that ,the more people talk about how Daniel seems to concern the present day, the less they seem to dwell on Daniel in context. ...But this could go on forever.