I've tamed and bred 2 star wolves. I had the luxury of stone at the time, but I have tamed lesser wolves using wood.

Yes it is possible.

Pro-tip : If you want them to breed have them follow you before you feed them , Slowly lead them along wait for them to eat, then slowly lead them again until you see the inevitable hearts pop out. this way you a guaranteed pups every time.

Also when they actually give birth there is a splash of blood.