The United States is imposing new sanctions on Iran's oil industry after Washington withdrew from a nuclear deal between Tehran and other global powers.
"They were in big big trouble", he said.
USA hardliners want to press ahead on SWIFT, but others argue to keep the option as a bargaining card with the Europeans and say that SWIFT access remains useful in tracking Iranian transactions.
After President Donald Trump made a decision to pull the United States out of the Joint Comprehensive Plan of Action (JCPOA), the multinational deal under which Iran agreed to suspend its nuclear program, his administration announced that it would reinstate economic sanctions against Iran, including those aimed at its oil exports.
"Thus far, potential waivers appear targeted at India and South Korea, and they require some reductions over current import volumes while still allowing oil to flow", he said.
According to an Economic Times report, the U.S. has broadly agreed to grant India a waiver from Iran sanctions, which would allow Indian oil companies to continue to import about 1.25 million tonnes of oil a month till March from Tehran.
Under the law, the USA president must periodically issue a "determination" on whether there is sufficient supply in the market from non-Iranian sources for countries to significantly cut their Iranian purchases.
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Erdogan also said Saudi's public prosecutor was due to meet the Istanbul prosecutor in Istanbul on Sunday. Turkish media have published details of his alleged torture and decapitation.
The US has insisted all along that it wanted every country to reduce oil imports from Iran to zero eventually, but was open to country-specific waivers that would allow limited imports by those pledging "significant" cut. Under the Obama-era deal, involving five permanent members of the United Nations Security Council and Germany, Iran agreed to stop its nuclear programme in exchange of relief from economic sanctions. Other countries, including Iraq and Afghanistan, depend on some imports from Iran.
"This is something that we're going to ask others to help us with and we're going to maintain this pressure on this regime".
The administration has said it is considering waivers on a case-by-case basis.
Meanwhile, US President Donald Trump has spoken to Prime Minister Narendra Modi and discussed trade issues between the two countries, a top White House official said Thursday. "There is much more that it's going to need to do", he said.
Federica Mogherini believes that despite the new rollout of sanctions, trade between Europe and Iran will continue in defiance of Mr. Trump.
U.S. Arab allies Saudi Arabia and the United Arab Emirates as well as Israel have long sought for Washington to work to curtail non-Arab and predominantly Shiite Muslim Iran's influence in the Middle East, including in war-torn Syria.