The CIA, relying mainly on circumstantial evidence and expert conclusion, believes Saudi Crown Prince Mohammed bin Salman ordered Mr Khashoggi's assassination but the oil-rich kingdom's foreign minister has rejected the claims.
Saudi Arabia's Crown Prince Mohammed bin Salman is thought to be a key piece to USA attempts to broker an Israeli-Palestinian peace deal, though the scandal surrounding Khashoggi's killing has thrown a shadow over those efforts.
The US president added, however, that the US "relationship is with the Kingdom of Saudi Arabia".
The king made the remarks on Monday in his annual policy speech to the kingdom's most senior officials, military officers, clerics and princes.
Saudi Arabia and the United Arab Emirates on Tuesday announced a new initiative in Yemen to address the humanitarian situation in the country, including an additional $500 million aid program.
A Saudi prosecutor has indicted 11 people for the murder and is requesting the death penalty against five of the men.
"The global community has to work to put an end to the Iranian nuclear program and stop its activities that threaten security and stability".
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He reaffirmed Saudi support for a Palestinian state with East Jerusalem as its capital, a long-standing position thrown into question a year ago when the crown prince appeared to back a nascent USA peace plan that aligns with Israel on key issues.
It reported that the person had not yet been chosen, and that Saudi leaders were reserving the use of that plan in case the pressure on the crown prince became too much.
Crown Prince Mohammed bin Salman will head to the G20 summit as part of a foreign trip, it quoted Saudi Energy Minister Khalid al-Falih as saying.
The president, in a statement released by the White House, indicated he had no intention of cancelling military contracts with Riyadh, saying, "if we foolishly cancel these contracts, Russian Federation and China would be the enormous beneficiaries".
Khashoggi, a Saudi who lived in the United States, was a columnist for the Washington Post and often criticised the royal family.
"We would not be surprised if that happens", the source reportedly said.
Saudi Arabia offered shifting explanations for Khashoggi's disappearance before suggesting he was killed during a botched rendition operation by "rogue agents". The administration has imposed sanctions on 17 Saudis accused of participating in the killing.