According to Berean Research:
The Vatican said Wednesday that it had concluded a treaty to recognize Palestinian statehood, a symbolic but significant step welcomed by Palestinians but upsetting to the Israeli government.
Formal recognition of a Palestinian state by the Vatican, which has deep religious interests in the Israeli-occupied Palestinian territories that include Christian holy sites, lends a powerful signal of moral authority and legitimacy to the efforts by the Palestinian Authority’s president, Mahmoud Abbas, to achieve statehood despite the long paralyzed Israeli-Palestinian peace process.