Iwobi made his 19th PL appearance of the season, while goalkeeper Petr Cech kept his 200th clean sheet in the league.
After a wretched run left Wenger fighting to save his job, a 2-0 win at AC Milan in the Europa League on Thursday offered the Frenchman temporary respite from the torrent of abuse he has endured this season.
Arsenal took an early lead in the eighth minute on Shkodran Mustafi's header off a cross by Ozil, who reached 50 assists in a record 141 EPL matches.
Cech saved his first penalty for Arsenal when he stopped Troy Deeney's kick in the second half - sweet revenge for Arsenal following the striker's taunts that the Gunners had lacked "cojones" in defeat at Vicarage Road in October.
The Armenian playmaker played an inch-perfect pass to Aubameyang who raced clear of the Watford defence to double Arsenal's lead yesterday.
Victory for sixth-placed Arsenal took them to 48 points, eight points behind defending champions Chelsea.
Understandably maybe, considering the country was in the midst of being battered by "Storm Emma", as well as the fact Arsenal's showing the League Cup final the Sunday prior was not exactly the most inspirational display.
INX Media case: ED can't arrest Karti till March 20
A Delhi court on Monday sent Karti Chidambaram to judicial custody till March 24 in the INX Media case, ANI reported. Karti Chidambaram was produced before Delhi's Patiala House Court on Monday after his three-day CBI custody ended.
Jack Wilshere and Calum Chambers are on the substitutes bench following their midweek exertions while Aaron Ramsey and the aforementioned Koscielny are not in the squad altogether.
'I remember very well every time he refused the biggest clubs to stay at Arsenal.
Ray Parlour still doesn't expect Arsene Wenger to be at Arsenal next season.
"I didn't see it myself but I did have that confirmed, which was part of the reason why the people in the directors' box had to go inside to save any more problems like that".
Arsenal's decline in recent years has perhaps contributed to their struggles in recruiting top players when compared to their domestic rivals, with the likes of Mesut Ozil and Alexis Sanchez proving to be exceptions in that regard.
That's mainly because the duo played together at Borussia Dortmund before Mkhitaryan was sold to Manchester United. We have shown spirit and we are in a strong position now against Milan. Wenger was questioned if that was a worrying aspect for him.
Watford play in the Premier League next Saturday with a trip to Liverpool (17:30 GMT).