Turkish authorities said they have evidence proving that Khashoggi was killed by Saudi agents, while Riyadh officials have claimed the journalist was alive when he left the building and they don't know what happened to him.
Khashoggi, a prominent Saudi journalist, disappeared after entering the kingdom's consulate in Istanbul on October 2.
The president said the king denied any knowledge of what had happened to Khashoggi, a columnist for The Washington Post who had been critical of the crown prince.
The entourage around the prince invested heavily in burnishing MBS's credentials with the Trump White House as it took office and in driving the agenda on Persian Gulf affairs, including the war in Yemen and the blockade of Qatar, both associated closely with MBS and Mohammed bin Zayed al-Nahyan, his crown princely counterpart in Abu Dhabi.
During the initial consulate search, CNN reported on Monday that Saudi Arabia was preparing to acknowledge Khashoggi's death in a botched interrogation, after denying for two weeks any role in his disappearance.
Word of the Saudi plan comes as Secretary of State Mike Pompeo flies to Riyadh to meet with Saudi King Salman about the disappearance.
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Saudi Arabia had on Saturday dismissed accusations that Khashoggi was ordered murdered by a hit squad inside its Istanbul consulate, labelling it as "lies and baseless allegations".
Trump has threatened "severe punishment" if it turns out Khashoggi was killed in the consulate, but ruled out cancelling arms deals worth tens of billions of dollars.
Trump paid his first foreign visit as president to Saudi Arabia a year ago, praised its new young ruler, the king's son Prince Mohammed, and boasted of striking a deal to sell $110 billion (€95 billion) of USA weapons to the kingdom, something the president said he doesn't want to halt over the missing reporter, because it would hurt the United States economy. Among other things, Turkish officials have said, an autopsy specialist carrying a bone saw was among 15 Saudi operatives who flew in and out of Istanbul the day Khashoggi disappeared.
"If they don't buy it from us, they're going to buy it from Russian Federation or they're going to buy it from China", he said.
Mr Khashoggi had been a vocal critic of the Saudi Arabia ruling royal family.
A security official holds barriers during the arrival of Saudi officials at Saudi Arabia's consulate in Istanbul, Turkey October 15, 2018.
Saudi Arabia has responded to Western statements by saying it would retaliate against any pressure or economic sanctions "with greater action", and Arab allies rallied to support it.
Foreign minister Khalid bin Ahmed Al Khalifa tweeted two hashtags calling for a boycott of Uber in Bahrain and Saudi Arabia, as well as a broader hashtag urging followers to "boycott anyone who boycotts Saudi Arabia". Prince Mohammed told Reuters past year that Blackstone and BlackRock Inc were planning to open offices in the kingdom. Some U.S. companies that had planned to attend the conference, including The New York Times, have pulled out since Khashoggi's disappearance.