Cloud iridescence is a colorful optical phenomenon which occurs in a cloud and appears in the general proximity of the Sun or Moon. The colors resemble those seen in soap bubbles and oil on a water surface. It is a type of photometeor. This fairly common phenomenon is most often observed in altocumulus, cirrocumulus, lenticular, and cirrus clouds. They sometimes appear as bands parallel to the edge of the clouds. Iridescence is also seen in the much rarer polar stratospheric clouds, also called nacreous clouds.
There are many potential explanations for sightings. We recommend eliminating the most common and mundane before jumping to less probable conclusions or you submit a report.