Martin Brundle added: "The thing's blowing up, it's smashing the sidepods.
"That was a proper hand grenade of an engine blow up, wasn't it. That absolutely destroyed itself. That was a proper blow up."
Sainz did well to get out of the car before flames engulfed him, but it was a heartbreaking result for the Spaniard, who has had a horror run of luck this season.
It was the fourth time this year a Ferrari car has been forced to retire because of a technical failure.
Leclerc's victory was his third of the season and a broke a drought stretching back to the Australian Grand Prix in April. It was also his first podium since the Miami Grand Prix.
The Monegasque driver cut Verstappen's championship lead to 38 points but is still third overall behind Sergio Perez.
Leclerc had an issue with his throttle towards the end of the race was able to finish the race and avoid a double disaster for Ferrari.
"Weirdly it was more or less at the same time, so of course I had it in my mind," he said.
"I definitely needed that one. The last five races have been incredibly difficult for myself but also for the team.
"And to finally show that we've got the pace in the car and that we can do it, is incredible. We need to push until the end."
Australia's Daniel Ricciardo benefited from Sainz and Perez's DNFs and finished ninth, his third top 10 finish of the season.
Austrian Grand Prix results (top 10)
1) Charles Leclerc, Ferrari
2) Max Verstappen, Red Bull
3) Lewis Hamilton, Mercedes
4) George Russell, Mercedes
5) Esteban Ocon, Alpine
6) Mick Schumacher, Haas
7) Lando Norris, McLaren
8) Kevin Magnussen, Haas
9) Daniel Ricciardo, McLaren
10) Fernando Alonso, Alpine