The Gunners continued their fight for a Champions League qualification spot after Theo Walcott's strike and Shkodran Mustafi's header cancelled out Leroy Sane and Sergio Aguero's goals for the visitors.
Iwobi who came on as a 77th minute substitute for Danny Welbeck missed an opportunity to get the winning goal ten minutes later when he latched the ball over the bar from the edge of the penalty area.
The Nigerian who has played in 24 league games this season, lamented that the Gunners had to share the spoils after his inability to increase his league goal tally to four.
"We’ll take the result but we could have nicked it at the end. I had a good chance to score but unfortunately we’ll have to settle for a point," Iwobi told club's website.
"I thought I could have added a bit of energy to our attacking force, and that’s what I tried to do.
"It was an intense game with a lot of aggressive tackles, a lot of running and sprints, so I tried to add energy when I came on.
"It was a very tough match and we were behind twice, so I guess we have to be satisfied with that."
Iwobi strongly believes the Gunners can still get in the title race and finish in the top four despite being seven points behind fourth placed City.
He said, "We still believe that we can be in the top four, and that we can be in the title race as much as we can, but we’ll take it step by step and see where we end up at the end of the season."