This Messianic prophecy is of Jesus coming to rule and reign over all the people of the world…both Jew and Gentile. This is also shown in Isaiah 49:6 where it says that Jesus is coming not only to Israel, but to the Gentiles…”that You may bring My salvation to the ends of the earth.” It’s not that there’d be a continuous reign by the descendants of Judah…only the promise of the permanent right to rule…this being in Jesus Christ, the Messiah. And at that time He will say, ” Before Me every knee will bow; by Me every tongue will swear.” (Isaiah 45:23)
The story comes out of Matthew 21:42 where Jesus is quoting this Scripture to the chief priests and elders of the Temple…whom were not too happy about Him accusing them of rejecting the Messiah…namely Himself, Jesus. Continuing in the next verse, Jesus countered with, “Therefore, I tell you that the Kingdom of God will be taken away from you and given to a people who will produce its fruit.” Jesus was offering the gift of salvation to Gentiles…building His Church from those willing to accept Him as Savior. And as Believers in Christ, we are the Church. To paraphrase Ephesians 2:20, We the Church, are God’s people, built on the foundation of all martyred apostles and prophets, with Jesus being the chief cornerstone.