Speaking to CNN's Christian Amanpour, Erdoğan said Turkey had had a strategic alliance with Iran since the 17th century, adding that his country wanted a diplomatic solution to the problem.
"I believe that we can find a way out. I am here for a diplomatic solution," Erdoğan said, adding that countries that were members of the International Atomic Energy Agency and the 1968 Non-Proliferation Treaty (NPT) "must all work together on this, and as (for) Turkey, we could act as a very important intermediary."
Erdoğan said Turkey did not want to see any nuclear weapons in the Middle East, noting that Israel, which did not recognize the NPT and was believed to have nuclear weapons, remained a member of the IAEA.
"Why do we not say the same thing to the country that does not recognize the NPT? That is also a cause for concern for me," Erdoğan said.
"It is important that we try to take steps to overcome those difficulties, so that we can strengthen peace in the Middle East," he said.
Erdoğan called on Israel to make a contribution to peace, which he said was proving difficult because when Israel's coalition government spoke, "it's not a symphony, it's a cacophony."
On the Armenian allegations, Erdoğan told CNN he was confident that the U.S. president would not use the term "genocide" to describe the incidents of 1915.
"That would be my expectation, because to this day, no American leader has uttered that word, and I believe that President Obama will not," he said.
Erdoğan underlined that the Turkish people also suffered terrible losses back then.
"No nation, no people has the right to impose the way it remembers history to another nation or people -- and Turkey does not try to do that," he added.