God now covenants with the nation of Israel, after saving them out of Egypt and bringing the people to Himself (Exodus 19:4). Like we saw with Abraham, the call to obedience follows the gift of salvation. In Abraham’s case, salvation was the gift of righteousness—credited to him on the basis of his faith. In Israel’s case, salvation was physical—out of the hands of slavery. Notice God’s promise to Israel in verses 5-6.
The promise is conditional. If Israel will obey God’s voice and keep His covenant, then the nation shall be God’s own possession among all the peoples. God owns the whole earth, but Israel will have a special place among the nations. The text does not say that all of Israel will receive salvation or be credited righteousness like Abraham did. It says that Israel would be God’s possession among all the peoples—a special possession physically. God also says that Israel shall be a kingdom of priests and a holy nation—a nation set apart for the purpose of representing God to the whole world. Israel is a kingdom of priests set before all the kingdoms of the earth.
This position on the earth, among the nations, was conditional upon Israel’s obedience and keeping of God’s covenant with the nation. The crediting of righteousness, which has been by faith so far in the narrative, is not particularly in view here. One does not become righteous by keeping the Law. Israel was the chosen priest among the nations and agreed to keep the Law because of her priestly position in this world. Though Israel was never able to keep the Law, Jesus, descended from Israel, did—gaining the eternal priestly position on the nation’s behalf. God was faithful to work out the true priesthood even though Israel was largely unfaithful.
No other nation is used like Israel. Israel is not replaced by the church as God’s chosen priesthood. When we speak of the church and salvation by grace through faith, we speak of the crediting of righteousness. When we speak of Israel being a chosen nation, we speak of worldly position and status under the Law. Crediting of righteousness is by grace through faith. National priesthood was conditional upon works. When we confuse those two things, we can easily complicate the narrative and make it seem incoherent. Israel failed, but Jesus, the Jewish Messiah, fulfilled the whole degree of the Law. He is the true high priest. In Him, people among all nations are credited righteousness by grace through faith.
The New Testament refers to Jew and Gentile Christians as a royal priesthood (cf. 1 Peter 2:5-9; Revelation 1:6; 5:10). As Jesus Christ has claimed victory, He gains us as representatives among the nations. We point people to Jesus Christ, who still stands forever as the Jewish High Priest—our only mediator with the Father.
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