Saudi Arabia is the UK's key ally in the region and a significant trading partner - with Britain also rolling out the red carpet for Crown Prince Mohammed bin Salman.
A White House statement described the murder as a "tragic incident".
Saudi Arabia's Foreign Minister says officials do not know details of how dissident journalist Jamal Khashoggi was killed in their consulate in Istanbul or where his body is.
The state-run Saudi Press Agency made the announcement early Saturday.
"We discovered that he was killed in the consulate".
Saudi Arabia is one of the biggest buyers of German arms.
Eighteen Saudi nationals had been arrested, the Saudi public prosecutor said in a statement.
The stance echoes that of American President Donald Trump, who has warned against scrapping a multibillion-dollar US-Saudi arms deal. But he says he'll be making "certain recommendations". "We don't know where the body is", Mr Jubeir said. "We are not arrived to this point", said the u.s. president, referring to the "possibility" that MBS has had only a posteriori knowledge of the events.
But some US lawmakers expressed doubt about the Saudi explanation.
President Trump said Saturday that his administration has not heard an audio recording that Turkish investigators are reported to possess as proof that Mr. Khashoggi was murdered inside the consulate on October 2.
"Turkey will reveal whatever happened".
Although Riyadh said that Saudi Crown Prince Mohammad bin Salman had nothing to do with Khashoggi's death, that claim has been met with skepticism.
Private A Haber TV said as many as 15 employees were being questioned on Friday.
But following "reports we were getting from Turkey", Saudi authorities began an investigation, which discovered "he was killed in the consulate". The Saudis have dismissed those reports as baseless.
Back inside the consul's office, according to the official's account, Khashoggi told Mutreb he was violating diplomatic norms and said, "What are you going to do with me?"
Saudi Arabia on Saturday admitted that Khashoggi died inside its Istanbul consulate after an altercation, an explanation that U.S. president Donald Trump said he found credible, but failed to convince top United States lawmakers.
Meanwhile, a top British official cast doubt Sunday on Saudi Arabia's claim that Mr. Khashoggi, 59, died after a quarrel with officials inside the Saudi consulate in Istanbul escalated into a fatal fist fight.
He said Turkey would share its evidence of Khashoggi's killing with the world and that a "conclusive result" of the investigation is close. By acknowledging Khashoggi was killed without taking direct responsibility, Saudi leaders could give Washington and Ankara a way out of an unwanted confrontation with the Persian Gulf powerhouse.
Bob Corker, republican chairman of the powerful foreign Affairs committee in the u.s. Senate, said Sunday morning on CNN to have the "feeling" that MBS was "behind" the death of Jamal Khashoggi.
For more than two weeks they had insisted that he left the building alive. "Our condolences go out to them, we feel their pain", Mr Jubeir said. It's unclear if police had already searched these areas.
The person spoke on the condition of anonymity because he is not authorized to speak on behalf of the administration or the Saudi government.
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