The foreign affairs minister, Marise Payne, has not ruled out an arms export ban to Saudi Arabia or sanctions, amid the global backlash against the kingdom over the killing of a journalist.

During a Senate estimates hearing in Canberra on Wednesday, the Greens leader, Richard Di Natale, asked Payne “at what point does Australia take a stand” and ban export sales and impose sanctions.

Payne responded the Australian government was closely watching the investigation into the “horrendous” death of the Washington Post reporter Jamal Khashoggi.

“All options are on the table, in terms of Australia respective response,” Payne told the hearing. “We recognise this is an extremely serious situation of the highest order of magnitude.”

The German chancellor, Angela Merkel, this week announced her government would not approve new arms exports to the kingdom.

Payne confirmed she had discussed the issue with European counterparts in recent days.

Under questioning from the Labor senator Alex Gallacher, Defence admitted it had made 14 approvals of military gear and services to Saudi Arabia in the past two years.

There were seven physical exports and three information-related exports given the nod last year. So far this year there has been four physical military exports approved to Riyadh.

Department official Tom Hamilton refused to release the value of the exports or the nature of the goods for “commercial in-confidence” reasons.

Hamilton emphasised Defence assessed a range of factors when considering approvals including international obligations, human rights, national and regional security, foreign policy and the risk equipment could be used to commit abuse.

The figures come amid ongoing criticism about Australia’s defence industry ties to Saudi Arabia amid ongoing atrocities in the Yemen conflict.

Hamilton could not categorically rule out Australian military equipment being used in Yemen war – which the United Nations has dubbed the “worst humanitarian crisis in the world”. He insisted the department was “very concerned in relation to current events”.

“Military equipment by its nature will contribute to the capability of a military force and will often contribute to a conflict,” Hamilton said.

But he said permits were not approved if they were considered likely to contravene international obligations.

The US president, Donald Trump, has ruled out an arms ban while Canada’s prime minister, Justin Trudeau, said his government would go ahead with a Saudi armoured vehicle export contract.

Saudi Arabia is the world’s largest importer of defence equipment and services by value according to a research group called IHS Markit.

In September, the defence minister, Christopher Pyne, flagged the federal government hoped to negotiate a defence cooperation memorandum of understanding with Saudi Arabia.

Hamilton said discussions were in the early stages and “it was not a priority at this time”.

He declined to say whether Saudi Arabia or Australia initiated the agreement but promised to provide a written answer at a later date.

In January, the Turnbull government unveiled a plan for Australia to become a top 10 global arms exporter in the next decade.

Hamilton told the hearing Defence was still working out transparency measures around that strategy and had to balance up accountability versus commercial interests.

Last week, the prime minister, Scott Morrison, withdrew Australian representatives from a major investment summit in Riyadh.

Save the Children has called on the Australian government to cease supplying military assets to Saudi Arabia until it halts unlawful airstrikes. The charity noted 22.2 million Yemenis, including 11.3 million children, are in need of humanitarian aid.

“Australia should use its place on the world stage to end human rights abuses, rather than supplying means to potentially prolong them,” spokesman Mat Tinkler said.

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