"I don't recall giving you the permission to speak in this council." Odin slammed his spear on the ground, "You and that moron Zeus, have no right to speak here, after causing all of this mess."
Zeus and Loki might have turned everyone into thinking that Arnold was the real threat here, but Odin knew both Loki and Zeus better than anyone there. He didn't grow a rugged beard like his own without gaining experience and knowledge. For all he knew, it could as well be another one of their tricks to overthrow Shiva from his place of power.
If this was the case, then he wouldn't allow any of their plans to succeed. Still, despite what he wanted to do or not, his hands were more or less tied regarding Arnold's matter. The moment Arnold killed Heimdall, he had turned Asgard into his enemies as well.