US placed sanctions on 17, including two top aides of Prince Mohammed as well as the Istanbul consul general at the time of the killing.

The journalist's body parts were then handed over to an agent outside the consulate grounds, the spokesman said.

Turkey President Erdogan said it was clear the murder was planned and that the order came from the top level of Saudi authorities.

Nearly 600 people have been killed since clashes erupted on November 1 in Hodeida, one of Yemen's most densely populated cities.

As tensions rose following the clash, Israeli PM Benjamin Netanyahu's office said he would cut short his trip to Paris and return home.

Samples taken from the drains at the Saudi consulate in Istanbul showed traces of acid, a Turkish newspaper said, without quoting sources.

'I announce that we will proudly bypass your illegal, unjust sanctions because it's against international regulations,' Rouhani said.

'The death toll is likely to rise due to the number of seriously wounded,' the Syrian Observatory for Human Rights said.

Saudi is only producer with significant spare capacity of around 2 million bpd that can be tapped to compensate loss of Iranian supplies.

All but five per cent of company's workforce, reportedly those in most senior positions, can leave without prior permission from employers.