On earth peace does not necessarily equate to peace on earth as we know it. I believe that this peace it to men (around the world) that we will be reconciled in peace to God through Jesus Christ.
“And Jesus stood before the governor: and the governor asked him, saying, Art thou the King of the Jews? And Jesus said unto him, Thou sayest. And when he was accused of the chief priests and elders, he answered nothing. Then said Pilate unto him, Hearest thou not how many things they witness against thee? And he answered him to never a word; insomuch that the governor marvelled greatly. Now at that feast the governor was won't to release unto the people a prisoner, whom they would. And they had then a notable prisoner, called Barabbas. Therefore when they were gathered together, Pilate said unto them, Whom will ye that I release unto you? Barabbas, or Jesus which is called Christ? For he knew that for envy they had delivered him.”
Matthew 27:11-18 KJV
https://bible.com/bible/1/mat.27.11-18.KJV