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Speaking exclusively to CNN in Ankara on Tuesday, Erdogan said that there was "nothing to gain" by the move and urged the US to reverse the decision while there was still time to do so, repeating his claim that "East Jerusalem is the capital city of Palestine" and will one day be home to an embassy serving Turkey's interests in a Palestinian state.

He also said the move would jeopardize the global economy. "The United States might gain some certain positivity out of the withdrawal...or the rising oil prices, but many of the countries in poverty will be hit even harder and deeper."

By reimposing sanctions on Iran, Trump is declaring "an economic war" that the world can ill afford, the Turkish leader said.

When asked if he has concerns of a geopolitical war breaking out as a result, he said: "That's not what we would wish to see, of course ... this is not what we'd like to expect. However, in my view, the US would be the ones to lose. Iran will never compromise on this agreement, and will abide by this agreement to the end ... that's what I think. However, the US will lose in the end."

Asked directly what he thinks about the US President, Erdogan said only that "as politicians, we need to abide by the boundaries of mutual respect."

Erdogan's negative remarks about US policy speak to the growing tensions between the two nations. While they retain an important military alliance, their relations have become increasingly frayed as Erdogan has consolidated political power and aligned himself more closely with US foes such as Russia and Iran.

The NATO allies have sparred over a slew of issues in recent years, with added friction coming from the continuing conflict in Syria.

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Erdogan calls Jerusalem US Embassy move 'huge mistake'