US President Donald Trump insists the United States intends to remain a "steadfast partner" of Saudi Arabia, despite the murder of journalist Jamal Khashoggi.

Mr Trump has released a statement saying "it could very well be" that the country's crown prince Mohammed bin Salman (often referred to as MBS) had knowledge about the killing.

But he says it would be foolish to cancel military contracts with the Gulf state, because Russia and China would be "enormous beneficiaries".

At the weekend it was reported that the CIA concluded that the crown prince ordered the killing of Mr Khashoggi.

The Washington Post - the newspaper which published Mr Khashoggi's columns - reported that the CIA had 'high confidence' in its assessment that Mohammed bin Salman ordered the assassination.

It was reported that the conclusion was reached based on "multiple sources of intelligence".

Mr Khashoggi - a prominent critic of the Saudi regime disappeared after entering the Saudi consulate in Istanbul on October 2nd.

Saudi's US spending

Under the heading of "America First!", Mr Trump's release on Tuesday says: "The world is a very dangerous place! The country of Iran, as an example, is responsible for a bloody proxy war against Saudi Arabia in Yemen, trying to destabilize Iraq's fragile attempt at democracy, supporting the terror group Hezbollah in Lebanon, propping up dictator Bashar Assad in Syria (who has killed millions of his own citizens), and much more.

"Likewise, the Iranians have killed many Americans and other innocent people throughout the Middle East. Iran states openly, and with great force, 'Death to America!' and 'Death to Israel!' Iran is considered 'the world's leading sponsor of terror'."

The statement continues: "On the other hand, Saudi Arabia would gladly withdraw from Yemen if the Iranians would agree to leave.

"They would immediately provide desperately needed humanitarian assistance. Additionally, Saudi Arabia has agreed to spend billions of dollars in leading the fight against Radical Islamic Terrorism."

On the issue of Saudi Arabia, Mr Trump adds: "After my heavily negotiated trip to Saudi Arabia last year, the Kingdom agreed to spend and invest (US)$450 billion in the United States.

"This is a record amount of money. It will create hundreds of thousands of jobs, tremendous economic development, and much additional wealth for the United States.

"Of the $450 billion, $110 billion will be spent on the purchase of military equipment from Boeing, Lockheed Martin, Raytheon and many other great US defense contractors.

"If we foolishly cancel these contracts, Russia and China would be the enormous beneficiaries - and very happy to acquire all of this newfound business. It would be a wonderful gift to them directly from the United States!"

Saudi Crown Prince Mohammed bin Salman | Image: Amr Nabil/AP/Press Association Images

Trump on Saudi crown prince: 'Maybe he did and maybe he didn't'

On the murder of Mr Khashoggi, Mr Trump says: "The crime against Jamal Khashoggi was a terrible one, and one that our country does not condone.

"Indeed, we have taken strong action against those already known to have participated in the murder.

"After great independent research, we now know many details of this horrible crime. We have already sanctioned 17 Saudis known to have been involved in the murder of Mr. Khashoggi, and the disposal of his body.

"Representatives of Saudi Arabia say that Jamal Khashoggi was an 'enemy of the state' and a member of the Muslim Brotherhood, but my decision is in no way based on that - this is an unacceptable and horrible crime.

"King Salman and Crown Prince Mohammad bin Salman vigorously deny any knowledge of the planning or execution of the murder of Mr Khashoggi.

"Our intelligence agencies continue to assess all information, but it could very well be that the Crown Prince had knowledge of this tragic event - maybe he did and maybe he didn't!

"That being said, we may never know all of the facts surrounding the murder of Mr Jamal Khashoggi. In any case, our relationship is with the Kingdom of Saudi Arabia.

"They have been a great ally in our very important fight against Iran.

"The United States intends to remain a steadfast partner of Saudi Arabia to ensure the interests of our country, Israel and all other partners in the region. It is our paramount goal to fully eliminate the threat of terrorism throughout the world!".