Saudi dismisses threat of sanctions over Khashoggi

Saudi Arabia on Sunday dismissed threats of sanctions over the disappearance of journalist Jamal Khashoggi and vowed that the oil-rich kingdom would retaliate with consequences for the world economy.

Riyadh's reaction came hours after US President Donald Trump threatened Riyadh with "severe punishment" if Khashoggi was killed inside the Saudi consulate in Istanbul as alleged.

"The kingdom affirms its total rejection of any threats or attempts to undermine it whether through threats to impose economic sanctions or the use of political pressure," an official source said, quoted by state news agency SPA.

He said Riyadh would "respond to any action with a bigger one", pointing out that the oil superpower "plays an effective and vital role in the world economy".

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Khashoggi, a contributor to the Washington Post, has not been seen since he walked into the Saudi consulate on October 2.

Turkish officials have said they believe Khashoggi was killed inside the consulate, and lurid claims have been leaked to media that he was tortured and even dismembered.

Saudi Arabia has rejected allegations the journalist was murdered inside its mission and insisted he had left the consulate safely.