What's behind the Arab silence over Khashoggi fate? l Inside Story

World War 3: Donald Trump vows ‘severe punishment’ if Saudi Arabia murdered journalist

"If, as they say, this awful murder didn't happen then where is Jamal Khashoggi?".

The Saudi stock market lost $US33 billion of its value on Sunday amid investor worries about deteriorating worldwide relations, one of the first signs of the economic pain that Riyadh could suffer over the affair. The market clawed back some of the losses, closing down 3.5 per cent for the day.

However, Mr Trump added the U.S. would be "punishing itself" if it cancelled military sales to Saudi Arabia over the disappearance of Mr Khashoggi.

'The first thing for us to do is for us to get together with our allies, the United States, the Europeans and others, to discuss very seriously what's going on, ' Mr Tugendhat told BBC Radio 4's Today.

Trump said in a CBS interview on Saturday that there would be "severe punishment" for Saudi Arabia if it turns out that Khashoggi was killed in the Saudi consulate in Istanbul. The lawmakers' letter was a preliminary step under the Global Magnitsky Act toward taking punitive action.

The Saudi Government issued a statement condemning and denouncing "the false accusations circulated in media reports on the Saudi Government and other people in the purported relation to the disappearance" of Khashoggi.

Turkish officials say they believe a 15-member Saudi "assassination squad" killed Mr Khashoggi at the consulate.

"Something this big would definitely spook investors, and Saudi just opened up for foreign direct investment, so that was big", said Issam Kassabieh, a financial analyst at Dubai-based firm Menacorp Finance. However, he also has said he wants to maintain the arms deals he struck with the kingdom on a trip to Riyadh, his first overseas as president.

Citing a shared interest in the protection of journalists, the ministers said "light must be shed" on Mr Khashoggi's fate, and cautioned that the Saudi government was expected "to provide a complete and detailed response".

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As Saudi Arabia warned of possible economic retaliation of its own, Sens.

The selection of Saudi Arabia, as CBS News' chief White House correspondent Major Garrett documents in his book "Mr. Trump's Wild Ride", bucked prior presidents' habit of first visiting a more traditional United States ally, and signaled that the administration wanted to put a greater emphasis on good relations with Riyadh.

As a contributor to the Post, Khashoggi has written extensively about Saudi Arabia, including criticizing its war in Yemen, its recent diplomatic spat with Canada and its arrest of women's rights activists after the lifting of a ban on women driving.

"It's being investigated, it's being looked at very, very strongly", Trump said.

But the president has also said "we would be punishing ourselves" by cancelling arms sales to Saudi Arabia.

Secretary-General of the Gulf Cooperation Council (GCC) Abdul Latif Al-Zayani on Sunday condemned the media campaign against Saudi Arabia over the disappearance of Saudi citizen Jamal Khashoggi in Turkey.

The UK, Germany and France have demanded a credible investigation into the disappearance of prominent Saudi journalist Jamal Khashoggi. Otherwise, the U.S. risks losing credibility when it comes to human rights, he told CBS' Face the Nation on Sunday.

He expressed his deep appreciation for the high standing and leadership of Saudi Arabia; praised its position as a major force to ensure the security and stability of the Arab and Islamic worlds and the region as a whole and praised its positive role in all its initiatives and constructive policies that contribute to regional and worldwide security and development.

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