Numerous times in the Old Testament, especially in the Psalms, prophecies concerning the Messiah are written. This psalm is an example of Messianic prophecy. The four verses each speak of an aspect of the Messiah’s place and actions in the future.
The first verse speaks of the nations (heathens) rebellious attitude toward the reign of the Messiah. It tells of how they desire to break the bonds with which He rules.
The second verse of the psalm shows the futility of such rebellion, as God laughs and distresses them from the holy hill of Zion
The third verse declares the decree that the Messiah is the Son of God and will have the nations as His inheritance and shall break the nations with a rod of iron.
The fourth verse advises the kings of the earth to serve the Lord, to pay homage to the Son, for blessed are those who trust in Him.
This is a prophetic word for all nations, even today. Trust in the Lord, not in yourself or human power, definitely not in the gods of this world. In the end, the only hope is Christ!