Passage
All nations encompassed me; but in the name of Jehovah have I destroyed them.
All nations encompassed me; but in the name of Jehovah have I destroyed them.
Psalms 118:8 It is better to trust in Jehovah than to put confidence in man;
Psalms 118:9 It is better to trust in Jehovah than to put confidence in nobles.
Psalms 118:10 All nations encompassed me; but in the name of Jehovah have I destroyed them.
Psalms 118:11 They encompassed me, yea, encompassed me; but in the name of Jehovah have I destroyed them.
Psalms 118:12 They encompassed me like bees; they are quenched as the fire of thorns: for in the name of Jehovah have I destroyed them.
The verse centers on "nations", "encompassed", "name", "jehovah", and "destroyed". It is saying that the verse draws attention to "nations" and "encompassed", so its meaning should be read from those terms before moving to application.
The nearby context moves from verse 9's "It is better to trust in Jehovah..." into verse 11's "They encompassed me yea encompassed me but...", so "nations" and "encompassed" belong inside that flow. In Psalms context, the local focus is worship, trust, the LORD's kingship, and covenant mercy.
A plain takeaway is to answer the verse's own emphasis on "nations" and "encompassed" with trust shaped by these words, not by a vague optimism outside the passage.