Iridescent material found in northern Israeli city (5)
I believe the answer is:
nacre
'iridescent material' is the definition.
(I've seen this in another clue)
'northern israeli city' is the wordplay.
'northern' becomes 'n' (abbreviation e.g. N. Ireland).
'israeli city' becomes 'acre' (I've seen this in another clue).
'n'+'acre'='NACRE'
'found in' acts as a link.
(Other definitions for nacre that I've seen before include "Mother-of-pearl - crane (anag)" , "Mother of pearl" , "Constituent of inlay furniture" , "inside of shell" , "valuable material" .)