What is the intended meaning of the hadith "أمرت أن أقاتل الناس"? Does it include fighting all people, or only the inhabitants of the Arabian Peninsula?

Al-Tahawi mentioned the reason for the narration of the hadith (definition): "Go and leave him be," which is that a man came to the Prophet, peace and blessings be upon him, who ordered his execution. Then he called him and asked: "Do you bear witness that there is no god but Allah?" He said: Yes. So, he ordered him to be released. The intent of the hadith is to fight all polytheists, but it does not necessarily mean that Muslims are required to do so all at once; rather, the matter is contingent upon capability. Islam is not eager to shed blood; rather, it is a religion of mercy that calls to the worship of Allah and begins with da'wah (invitation) before fighting. If people embrace Islam, or enter into a truce, or make peace, or pay jizya, Muslims cease fighting them. Fighting is a means, not an end, and it has its exceptions, restrictions, and controls. It does not necessitate killing; rather, the disbeliever is left to his religion if there is a reason to refrain from fighting, "There is no compulsion in religion."