Historical Context: The Merchant of Venice was written in the late 16th century, a time when England had a complicated relationship with religion, especially with Jews. Jews were often treated with suspicion and prejudice, which is reflected in the character of Shylock, the Jewish moneylender. Shakespeare's portrayal of Shylock can be seen as both a reflection of and a commentary on the anti-Semitic attitudes of his time.

Social Context: The play also explores issues of justice, mercy, and the law, which were hot topics in Elizabethan England. The bond between Shylock and Antonio reflects the tensions between strict justice (demanding the letter of the law) and mercy (showing compassion).