Saudis serve notice of retaliation Two senators respond

Writer’s disappearance could spur economic ripples in kingdom

DUBAI, United Arab Emirates — Saudi Arabia on Sunday threatened to retaliate for any sanctions imposed against it after President Donald Trump said the oil-rich kingdom deserves “severe punishment” if it is responsible for the disappearance and suspected murder of Washington Post contributor Jamal Khashoggi.

The warning from the world’s top oil exporter came after a turbulent day on the Saudi stock exchange, which plunged as much as 7 percent at one point.

The statement was issued as international concern grew over the fate of the writer, who vanished on a visit to the Saudi Consulate in Istanbul over a week ago. American lawmakers threatened tough punitive action against the Saudis, and Germany, France and Britain jointly called for a “credible investigation” into Khashoggi’s disappearance.

Later Sunday, Saudi King Salman and Turkish President Recep Tayyip Erdogan spoke by telephone over the disappearance.

Turkey said that Erdogan “stressed forming a joint working group to probe the case.”

Turkish officials have said they fear that a Saudi hit team killed and dismembered Khashoggi, who wrote critically of Saudi Crown Prince Mohammed bin Salman. The kingdom has called such allegations “baseless” but has not offered any evidence Khashoggi ever left the consulate.

“Something this big would definitely spook investors, and Saudi just opened up for foreign direct investment, so that was big,” said Issam Kassabieh, a financial analyst at Dubai-based firm Menacorp Finance. “Investors do not feel solid in Saudi yet, so it’s easy for them to take back their funds.”

In an interview that aired Sunday, Trump told CBS’ “60 Minutes” that

WASHINGTON — Two Senate Republicans on Sunday threatened tough punitive action by Congress against

Saudi Arabia, including a possible halt of military sales, if missing journalist Jamal Khashoggi was indeed killed inside the Saudi consulate in Istanbul.

Sens. Marco Rubio and Jeff Flake, members of the Foreign Relations Committee, said Congress was prepared to move quickly and firmly if President Donald Trump failed to adequately respond to the Oct. 2 disappearance of Khashoggi.

Rubio said U.s.-saudi relations might need to be “completely revised.” He also urged Treasury Secretary Steven Mnuchin to skip a conference this week in Saudi Arabia. Saudi Arabia would face strong consequences if involved in Khashoggi’s disappearance.

“There’s something really terrible and disgusting about that, if that was the case, so we’re going to have to see,” Trump said. “We’re going to get to the bottom of it, and there will be severe punishment.”