SAUDI Arabia has warned it will respond to any "threats" against it following US President Donald Trump's warning of "severe punishment" over the disappearance of Washington Post contributor Jamal Khashoggi.
President Trump made a point of visiting the kingdom on his first overseas trip as president and has touted arms sales to Saudi Arabia.
But 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 kingdom's statement said.
"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.
Turkish officials say they fear Saudi agents killed and dismembered Mr 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.
In an interview, President Trump told CBS' 60 Minutes show 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," he said.
