A colourful cloud iridescence formed above a city in the Philippines.

Footage shows rainbow-like hues appearing to swirl with the clouds in the sky as seen from a road in Calamba City, Laguna, on March 27 before sunset.

Ally Benavidez Jarce said she was in a passing car when she noticed a strange formation in the sky.

She said: 'My husband and I thought that the colour of the clouds was just a reflection of the dark tint of our car until I became curious and had to pull down the window to see it properly.

'We were so amazed. I'm not sure what it was, but it really looked like something magical was happening in the sky.'

Cloud iridescence is a rare and beautiful optical phenomenon that happens when water droplets or ice crystals in certain clouds scatter and diffract sunlight, creating stunning rainbow-like colours across the cloud.