The Israelites went against the Covenant they had made with Allah. The sin was so grave that one could have expected utter destruction and ruin to descend on them as a punishment. But Allah, in His mercy, spared them in so far as physical life is concerned, although they will have to pay for their treason in the other world. Allah's mercy is of two kinds. One is general and extends to believers and disbelievers alike -- its action is to be seen in the shape of worldly well-being and prosperity. The other is special, and pertains to believers alone -- it will manifest itself particularly in the other world in the shape of salvation and closeness to Allah.

It appears that the last phrase of the present verse has been addressed to the Jews who were the contemporaries of the Holy Prophet ﷺ . Since having faith in him is also a part of the Covenant, these Jews too have been included among those who had been guilty of infringement. In this verse, Allah asks them to realize that it is in His mercy alone that he has not, in spite of their treason, sent down on them the kind of catastrophic punishment in this world as used to descend on the other infidels and traitors who have gone before.

Since a number of authentic ahadith declare that it is the barakah of the Holy Prophet ﷺ that catastrophic punishments no longer descend on any people, some commentators have identified this particular mercy and grace of Allah with the sending down of Muhammad ﷺ as a Prophet and Messenger of Allah.

In order to emphasize what the present verse has said, the next verse tells the story of another group of earlier transgressors and of the dreadful punishment which overtook them all of a sudden.