That is pure, unmittigated bullshit. What do you read with, anti-Catholic bigot glasses? The Vatican agreed with the G-8 that Hezbollah has instigated and exacerbated this conflict, but that Isreal should exercise restraint because of civilian casualties. The President himself said the same thing several times now, so I suppose that means he is "out against Isreal" too?
...and more recent news:
Vatican Condemns Israel for Attacks on Lebanon
http://www.freerepublic.com/focus/f-news/1665678/posts