Turkish prosecutors on Friday ordered the seizure of assets of a gold trader testifying in a New York trial against a Turkish banker accused of violating US sanctions against Iran, state media reported.

The Istanbul public prosecutor said Reza Zarrab and his family's assets were to be confiscated as part of a probe into the mogul, state-run news agency Anadolu said.

Zarrab on Thursday implied in testimony that President Recep Tayyip Erdogan knew how he and defendant Mehmet Hakan Atilla, deputy chief executive of Turkish lender Halkbank, circumvented sanctions.