The Vatican said Wednesday that it had concluded a treaty to recognize Palestinian statehood, a symbolic but significant step that was bound to be welcomed by many Palestinians but was likely to cause deep concern for 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 legitimacy to the efforts by the Palestinian Authority’s president, Mahmoud Abbas, to achieve statehood despite the long paralyzed Israeli-Palestinian peace process.

Israel has grown increasingly alarmed about the increased international acceptance of Palestine as a state since the United Nations upgraded the Palestinian delegation’s status in 2012 to that of a nonmember observer state. A number of European countries have also signaled their acceptance of Palestinian statehood.