The Gunners threw away a one-goal lead at the Etihad in the second half, to lose 2-1 to City on Sunday .
“I guess you could say we took our foot off the gas,” Iwobi told club website.
“Man City took advantage very well in the second half. We were up against a tough side, we were just unfortunate to not keep the win.
“We started off very well but we weren’t able to keep it up in the second half and we were very unfortunate.”
The defeat has seen Arsenal drop to fourth place, just one point ahead of rivals Tottenham who are fifth. But Iwobi is confident they can still bounce back and challenge for the Premier League title.
“We’re gonna keep on going, fight until the end and see where we go,” he continued.
“We’ll just have to continue how we were playing at the start of the season.
“We just have to continue the way we were playing at the start of the season. We just have to get that back and kick on now and prepare well for the next game.”