On Thursday, the Gunners secured an impressive 3-0 victory over Ostersunds in the round of 32 at Jamtkraft Arena to make a strong case for the next phase of the competition.
And the Nigeria international sees his side going all the way to clinch the trophy, with a top-four finish in the English top-flight also a possibility.
"We have to do our best in both competitions," Iwobi told ITV News.
"That's what we are trying to do: get top four and also win this competition. That's the aim.”
The 21-year-old was caught partying last month just before Arsenal were dumped out of the FA Cup by English Championship side Nottingham Forest with Arsene Wenger promising to fine the youngster for the behaviour, though he continues to select him for games.
"I'm still learning, I'm still young,” he continued.
"I'm still learning from the lads like Mesut Ozil and [Henrikh] Mkhitaryan. Every time I play, I am grateful."
The London outfit will head into the second leg of their Europa tie with the Swedish side at the Emirates Stadium with three goals advantage, just before their League Cup final with Manchester City on February 25.
"There is still a job to do and we have to do it at home. There is still half the tie to play," he added.
"First we have to focus on Thursday, take each game step by step. We have to prepare one more game before that [final]."