As Salamu Alaikum wa Rahmatullahi wa Barakatuhu
The Qainuqa' Jews Breach The Covenant:
Seeing that Allah sided with the believers and granted them a manifest victory and perceiving the Muslims’ awesome presence in Madinah, the Jews could no longer contain themselves or conceal indignation. They started a series of provocative and harmful deeds publicly. The most wicked amongst them were the tribe of Banu Qainuqa‘, who lived in quarters within Madinah named after them. As for jobs, they took up goldsmithery, blacksmithing and crafts of making household instruments, that is why war weaponry was available in large quantities in their houses. They counted 700 warriors, and were the most daring amongst the Jewish community in Arabia, and now the first to breach the covenant of cooperation and non-aggression which they had already countersigned with the Prophet (Sallallahu ‘Alayhi wa Sallam).
Their behaviour grew too impolite and unbearable. They started a process of trouble-making, jeering at the Muslims, hurting those who frequented their bazaars, and even intimidating their women. Such things began to aggravate the general situation, so the Prophet (Sallallahu ‘Alayhi wa Sallam) gathered them in assemblage, admonished and called them to be rational, sensible and guided and cautioned against further transgression. Nevertheless they remained obdurate and paid no heed to his warning, and said: “Don’t be deluded on account of defeating some Quraishites inexperienced in the art of war. If you were to engage us in fight, you will realize that we are genuine war experts.”
In this regard, the Words of Allah were revealed saying:
Say [O Muhammad (Sallallahu ‘Alayhi wa Sallam)] to those who disbelieve: ‘You will be defeated and gathered together to Hell, and worst indeed is that place to rest.’ There has already been a Sign for you (O Jews) in the two armies that met (in combat — i.e. the battle of Badr): One was fighting in the cause of Allah, and as for the other (they) were disbelievers. They (the believers) saw them (the disbelievers) with their own eyes twice their number(although they were thrice their number). And Allah supports with His Victory whom He pleases. Verily, in this is a lesson for those who understand.” [Surah Aal-‘Imran 3:12-13]
The answer of Banu Qainuqa‘ amounted, as seen, to war declaration. The Prophet (Sallallahu 'Alayhi wa Sallam) suppressed his anger and advised the Muslims to be patient and forbearing and wait for what time might reveal.
The Jews, went too far in their transgression, presumptuous behaviour and licentious practices. One day a Jewish goldsmith provoked a Muslim woman whose genitals become uncovered when he had tied the edge of the garment to her back. A Muslim man happened to be there and killed the man; the Jews retaliated by killing that Muslim. The man’s family called the Muslims for help and war started.
On Saturday, Shawwal 15th, 2 A.H., the Prophet (Sallallahu ‘Alayhi wa Sallam) marched out with his soldiers, Hamzah bin ‘Abdul Muttalib, carrying the standard of the Muslims and laid siege to the Jews’ forts for 15 days. Allah cast fear into their hearts, and they were obliged to defer to the Messenger (Sallallahu ‘Alayhi wa Sallam) judgement on their lives, wealth, women and children; their hands were tied behind their backs.
At this point, ‘Abdullah bin Ubai bin Salul started his hypocritical role and began to intercede for them persistently on grounds of former alliance between those Jews and His tribe Khazraj.
Muhammad (Sallallahu ‘Alayhi wa Sallam) dealt with this man as being a Muslim -- He had faked conversion into Islam for only one month, by that time -- and so he granted him his request; for Islam accepts people at their face value. Banu Qainuqa‘ handed over all materials, wealth and war equipage to the Prophet (Sallallahu ‘Alayhi wa Sallam), who set aside one fifth and distributed the rest to his men. After that they were banished out of all Arabia to Azru‘a in Syria where they stayed for a while and soon perished away.