Mikel Arteta’s side squandered a two-goal advantage against bottom-placed Wolves, severely denting their Premier League title aspirations.
Arsenal’s title charge suffered a major blow after surrendering a 2-0 lead to draw 2-2 with Wolves.
Bukayo Saka and Piero Hincapie provided a commanding cushion, but a Hugo Bueno strike and Tom Edozie’s late debut equalizer stunned the visitors.
The Gunners have now won just twice in seven league games, leaving them only five points clear of Manchester City, who possess a game in hand.
A disappointed Mikel Arteta took full responsibility for the collapse, citing a lack of second-half dominance.
“Extremely disappointed obviously with the result and with the way the game ended but we have to blame ourselves,” Arteta said.
“The performance in the second half we didn’t show anything close to the standards required in this league to win.” Arsenal must now regroup for Sunday’s North London derby.