This Psalm speaks of the Lord favoring Jerusalem out of all the land of Israel. The Bible says that Jerusalem will be the place where Jesus will reside when He returns. Jesus will become King of Israel and of the entire world. His throne will be in Jerusalem.
Many wars have been fought over Jerusalem, and there is conflict over it today. Judaism, Christianity, and Islam all consider Jerusalem to be their holy place. Two of Israel’s Temples were in Jerusalem. Both have been destroyed. Their former location is now occupied by a mosque.
Jesus was born just outside of Jerusalem in Bethlehem. He was crucified in Jerusalem. Therefore, Jerusalem is very important to Christianity.
In the last days armies will gather to destroy Jerusalem. However, Jesus will descend from Heaven and destroy those armies.
Jesus will then rule for 1000 years from Jerusalem. Countries will come to Jerusalem to worship Jesus and learn from Him. Indeed, Jerusalem has been and is very important to the Lord. It will continue to be so.