In the previous verse (56), it was said that Allah will be the final judge and decision-maker in what they used to differ in between them-selves. This verse describes that decision.
Commentary
Are the sufferings of this world beneficial for the next life?
The words "I shall punish them in this world and in the Hereafter" in verse 56 may create a little doubt. Since the statement here relates to the Judgment to be pronounced on the Last Day, how can the statement -'I shall punish them in this world and in the hereafter`- be explained as this world of ours would not exist at that time and even though it exists today, but the Judgment is to be given on the Day of Resurrection?
Jesus Christ was born into the Jewish community, but the Jews did not affirm his prophethood. Instead, they made out a false case against him and took him to the Roman court in Palestine. The court decreed to have him crucified, but God saved him and the Roman soldiers crucified another person who resembled Christ, taking him to be Christ. To punish this crime of the Jews, God decreed that the believers in Jesus Christ, would forever, till Doomsday, have dominion over the Jewish people. This is what was decreed by God for this world. The Hereafter however, is a different matter.
Uthmani text of the Madinah mushaf (King Fahd Complex). Translation: Saheeh International. Tafsir via Quran.com.