At the time of this prophecy, Assyria was the major power. Isaiah anticipated the rise of Babylon as an even crueler kingdom that would destroy Judah and Jerusalem (Isaiah 39:6–7; chapters 46–47).
The universal language in Isaiah 13:1–14:23 suggests that Babylon symbolizes all wicked and arrogant nations, similar to "Babylon the Great" in the book of Revelation (Revelation 18). So, while this description of Babylon's fall refers to the historic fall in 539 BC, it also applies to the final judgment against the ultimate kingdom of evil (Revelation 19).