President Donald Trump - who had previously appeared sceptical over Saudi's involvement in the disappearance and presumed death of Khashoggi - said the arrests were a "good first step", adding he wanted to speak with the Crown Prince before the USA was to take any action.
The Saudi explanation - that an argument in the consulate led to a fatal brawl - is at odds with the conclusions of Turkish investigators, who believe that Khashoggi was deliberately killed by a team of Saudi agents who were dispatched to Istanbul.
Here is a look at the Saudi narrative regarding Khashoggi, as it developed.
A fortnight after Mr Khashoggi's disappearance and apparent slaughter caused worldwide revulsion, the Saudis were finally forced to admit that he had died at their consulate in Istanbul.
However, Bahrain - a staunch Saudi ally - shut the station down in 2015, less than 24 hours after it broadcast an interview with an opposition official. They initially had claimed that Khashoggi walked out of the consulate on foot after retrieving a marriage document. Khashoggi spoke confidentially with her when she was working on a cover story on Saudi Crown Prince Mohammed bin Salman, who is colloquially known as MBS.
On October 18, US President Donald Trump said that "it certainly looks" that the Saudi journalist was dead.
Congressman Jim Costa said that he was appalled by the reports that Saudi officials were involved in the death of Khashoggi.
Congressman Accuses Kushner of Assisting Saudi Killing
He added that Saudi Arabia will not hesitate to form a joint investigation committee with Turkey to uncover the truth.
"The United States acknowledges the announcement from the Kingdom of Saudi Arabia that its investigation into the fate of Jamal Khashoggi is progressing and that it has taken action against the suspects it has identified thus far", Sanders said. They could not find evidence that he had handed over Twitter data to the Saudi government, but they nonetheless fired him in December 2015.
Jamal Khashoggi: What happened to the Saudi Arabian journalist? Turkish media quote officials as saying Khashoggi has been killed and dismembered inside the consulate. They tried to convinced Khashoggi to return to Saudi Arabia. The journalist disappeared after entering the building.
According to the transcript, Khashoggi talked about Saudi Crown Prince Mohammed bin Salman, the reform in Saudi, and his views on Saudi Arabia's future.
October 16: Without warning, the Saudi consul in Istanbul, a key witness in the case, leaves Turkey to Saudi Arabia. Turkish police also searched a forest outside Istanbul and a city near the Sea of Marmara for the remains of the journalist.
A total of 18 suspects have been detained in relation to the case.
Asked by a reporter whether he thought Saudi Arabia's explanation for Khashoggi's death was credible, Mr. Trump said, "I do".
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