Why does it say "Al Ken"?
Radak: Even the brazen Nochri tyrants will fear and honor You when they see what You did to Gog and Magog and his camp.
Malbim: Due to two acts of Hashem - (a) He destroyed the cities of idolaters, to take vengeance on them. (b) He removed the castles from Eretz Yisrael, in order to save Yisrael.
Who are "Am Az"?
Radak: They are Nochrim.
Malbim: They are Yisrael. Then, they will be a strong nation; they will honor You.
Why does it mention honor and fear separately?
Malbim: One who only destroys, He is feared, but not honored. One who saves and acts mercifully is honored, but not feared. Hashem will be feared due to His vengeance against the nations, and honored for his salvation of Yisrael.