Can anyone tell me how this rainbow cloud is formed?

https://lemmy.ca/post/55001912

Cloud iridescence! . Typical with thin high atmosphere clouds. When very small ice crystals or water droplets form the cloud they can diffract the light from the sun, causing an interference pattern to form. Not entirely dissimilar from an oil slick.
Cloud iridescence - Wikipedia

Thanks a bunch. Are they more common in hot countries? Never seen them in Canada.
I’m in a hot country and I have only seen it twice in my life with about 20 years between the two times.