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The term sihr, which usually denotes "sorcery" or "magic", primarily signifies "the turning of something from its proper [or "natural"] state of being into another state"; hence, it is often applied to the fascination or enchantment caused by exceptional, "spellbinding" eloquence (Taj al-'Arus). In its pejorative sense - as used by deniers of the truth to describe a divine message - it has also the connotation of "wilful deception" or "delusion".
The Commentators understand the reference to be to Walid ibn Mugaira, who was a wealthy Sybarite, Pagan to the core, and an inveterate enemy to the holy Prophet. He and Abu Jahl did all they could, from the beginning of the preaching of Islam, to abuse and persecute the Preacher, to run down his doctrine, and to injure those who believed in it. But the meaning for us is much wider. There are Walids in all ages. They cannot understand divine inspiration, and seek to explain its wonderful influence over the lives of men by some such unmeaning formula as "magic". The eternal Hope is to them mere human delusion!