Saudi Arabian officials have confirmed journalist Jamal Khashoggi was killed inside their consulate in Istanbul. The incident has sparked outrage and a call for an international investigation. But US officials have been cautious not to put blame on any Saudi official yet. CGTN's Michal Bardavid reports there's a lot at stake in the relationship between Riyadh and Washington.

On October 2nd Jamal Khashoggi entered the Saudi consulate in Istanbul. He never came out. The Saudis now admit he was killed inside the building that day.

The Saudi family and in particular Crown Prince Mohammad Bin Salman, known as MBS, had claimed they had no knowledge of what happened to Khashoggi, despite reports from Turkey that he was murdered.

More than two weeks after his disappearance, Saudi officials now say a fight broke out which resulted in the journalist's death. The government says 18 Saudis have been arrested and five top officials fired. No mention of MBS involvement. U.S. President Donald Trump on Friday appeared to accept the Saudi explanation as credible. When it comes to U.S. and Saudi relations, there's a lot at stake.

MICHAL BARDAVID ISTANBUL "U.S. officials - especially President Trump - have emphasized that Saudi Arabia is a significant strategic ally. Trump has stated the U.S. has arms and trade deals worth billions of dollars with the Saudis and that cutting ties with them could cost hundreds of thousands of American jobs."

Saudi Arabia's oil resources provide the kingdom with a lot of power. As the world's biggest oil exporter, Saudi Arabia has openly used oil as a threat.

OZAN SAKAR POLITICAL ECONOMIST "Saudi Arabia hasn't done this yet, but if it went to a limitation on petrol production, we could witness a significant price hike in oil. This would create inflation pressure in the world, and this is Saudi Arabia's biggest leverage."

Saudi Arabia is also a key strategic partner of the U.S. when it comes to global security concerns, in particular, Iran. 

GARETH JENKINS POLITICAL ANALYST "Under the Trump administration, he has really made Saudi the center of the U.S. campaign to try to isolate Iran. The Saudis have been working very closely with the U.S. to try to persuade people in the region, not to cooperate with Iran and try to isolate Iran."

Turkish officials have been conducting their own investigation into Khashoggi's death including searches within the consulate.

Analysts say the strategic alliance between Turkey and Saudi Arabia is a delicate balance.

GARETH JENKINS POLITICAL ANALYST "Last year, when Saudi tried to isolate Qatar, Turkey sided with Qatar so it's not like there hasn't been tension before, but there is some Saudi investment in Turkey. There is also investment and quite a lot of funds coming from the Gulf countries which are aligned with Saudi, so there is a risk for Turkey."

There are still many questions to be answered by the Saudis including what happened to Khashoggi's body. Once the investigation is complete, Turkish and U.S. officials may face some tough decisions regarding what kind of action to take against the Saudi government, if any. Michal Bardavid, CGTN, Istanbul.