Iwobi and Raul Jimenez each scored twice, to secure the win at Craven Cottage.
Despite a near miss from Divock Origi, who aimed for his first Forest goal, Fulham took control of the game.
Iwobi opened the scoring with a stylish finish, capitalizing on a quick counter and tapping in Willian’s cross from the left.
Four minutes later, Jimenez doubled their lead with a shot into the top corner after receiving Andreas Pereira’s pass.
Jimenez continued his performance in the second half, scoring his second goal by navigating past defenders and backheeling the ball into an open goal.
Iwobi added his second and Fulham’s fourth with a straightforward finish from Wilson’s cutback.
Captain Tom Cairney completed the party by capitalizing on a defensive mistake and curling a strike past Odysseas Vlachodimos.
The victory sees Fulham maintain their impressive form so far this season, setting the stage for a another encounter against West Ham.
Meanwhile, Nottingham Forest will look to regroup as they prepare for their upcoming match against Wolves.