The conclusion of this psalm turns its focus toward the spiritual and geographic heart of the relationship between God and His people. It bridges the gap between human expressions of blessing and the actual presence of God on earth.
The primary approach among commentators is to view Zion as the ultimate source of Divine and spiritual influence. From this central point, God radiates the light of His presence out into the world [מצודת דוד]. Furthermore, this is the location from which teaching and Torah spread to all nations, inspiring people everywhere to recognize His glory and offer Him their blessings [רד״ק]. Other perspectives highlight the mutual nature of this relationship. While the blessing ascends from Zion, it also descends back to the people based on the merit of the Israelites. Because God dwells in Jerusalem, He closely oversees the actions of the people and their sacred service, offering His blessing in direct response to their deeds [מלבי״ם].
The very notion that a holy King would receive blessings from human beings, or choose to reside within a physical, earthly city, is a surprising concept. This relationship is made possible because God established a dual connection with the world and with humanity. First, there is a spiritual bond with the human soul, which is represented by the concept of Zion. Second, there is a tangible connection to the physical world of action, represented by the actual city of Jerusalem and the altar [אלשיך].
The final call to praise God is not merely a general expression of enthusiasm. Instead, it serves as a direct instruction connected to the preceding thoughts. The command is to actively praise God specifically by declaring that He is blessed from Zion [אבן עזרא, מצודת דוד].