Updated October 15, 2018 01:29:16

Saudi Arabia has rejected threats to punish it over the disappearance of journalist Jamal Khashoggi in Istanbul, saying the kingdom would retaliate against any sanctions with tougher measures, the official state news agency reported.

Key points:

  • Saudi Arabia said it would respond with “greater action” if sanctioned
  • Donald Trump warned of “severe punishment” if Saudi Arabia was found to have killed Khashoggi
  • Saudi Arabia has denied any involvement in the journalist’s disappearance

The comments came after US President Donald Trump threatened “severe punishment” for Riyadh if it turned out Khashoggi, a prominent critic of Saudi authorities and a legal resident of the United States, was killed in the Saudi consulate in Istanbul.

Both the White House and the kingdom are under mounting pressure as concern grows over the fate of the veteran journalist, who has not been seen since he entered the Saudi Consulate in Istanbul on October 2.

“The kingdom affirms its total rejection of any threats and attempts to undermine it, whether through economic sanctions, political pressure or repeating false accusations,” the official Saudi Press Agency quoted an unnamed government source as saying.

“The kingdom also affirms that if it is [targeted by] any action, it will respond with greater action.”

The statement came after the Tadawul stock exchange in Riyadh dropped by 7 per cent at one point during the week’s first day of trading, with 182 of its 186 listed stocks showing losses by the early afternoon.

The market clawed back some of the losses, trading down over 4 per cent later on.

Turkish officials said they feared Saudi agents killed and dismembered Khashoggi after he entered the consulate, saying they have audio and video recordings of it that they have not released.

The kingdom has called the allegations “baseless”, but has offered no evidence the writer ever left the consulate.

Khashoggi, who was considered close to the Saudi royal family, had become a critic of the current government and Prince Mohammed, the 33-year-old heir apparent who has shown little tolerance for criticism.

Meanwhile, Britain, France and Germany have called on the Saudi and Turkish authorities to mount a “credible investigation” into Khashoggi’s disappearance, saying they were treating the incident with “the utmost seriousness”.

“There needs to be a credible investigation to establish the truth about what happened, and — if relevant — to identify those bearing responsibility … and ensure that they are held to account,” foreign ministers from the three countries said in a joint statement.

“We encourage joint Saudi-Turkish efforts in that regard, and expect the Saudi Government to provide a complete and detailed response. We have conveyed this message directly to the Saudi authorities.”

‘Could it be them? Yes’

In an interview to be aired Sunday local time, Mr Trump told the 60 Minutes program on US network CBS that the consequences of Saudi Arabia being involved would be “severe”.

“There’s something really terrible and disgusting about that, if that was the case, so we’re going to have to see,” Mr Trump said.

“We’re going to get to the bottom of it and there will be severe punishment.”

However, Mr Trump in the same interview said: “As of this moment, they deny it and they deny it vehemently. Could it be them? Yes.”

Saudi officials had no immediate comment on the stock sell-off, though state television aired an interview with an analyst who blamed it on weaker markets in the US — however, other stock exchanges in the Mideast saw far less volatility.

Saudi Crown Prince Mohammed bin Salman has aggressively pitched the kingdom as a destination for foreign investment.

But Khashoggi’s disappearance, and suspicions he may have been targeted over his criticism of the crown prince, have led several business leaders and media outlets to back out of an upcoming high-profile investment conference in Riyadh.

Mr Trump also said “we would be punishing ourselves” by cancelling arms sales to Saudi Arabia, which his administration touted on his first overseas trip.

The sale is a “tremendous order for our companies”, and if the kingdom does not buy its weaponry from the United States, they will buy it from others, he said. Mr Trump said he would meet with Khashoggi’s family.

US politicians in both parties have been more critical of Saudi Arabia, with several suggesting officials in the kingdom could be sanctioned if they were found to be involved in Khashoggi’s disappearance and alleged killing.

As a contributor to the Post, Khashoggi has written extensively about Saudi Arabia, including criticism of 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.

Those policies are all seen as initiatives of the crown prince, who has also presided over a roundup of activists and businessmen.

Reuters/AP

Topics: world-politics, journalism, law-crime-and-justice, saudi-arabia, united-states, turkey

First posted October 14, 2018 22:50:54