IPhone sent an unwanted email to all my contacts

I have iPhone 4S with IOS 7.0.6. There were 11 emails sent in about 2 minutes according to the timestamps in the sent folder on the iPhone.
When I went to the 'sent' folder on the iPhone it showed each message sent, but that would be the case if the email had synchronized before I got to it.
What is very interesting is this:  The contact list known by the AOL email on their web interface has one more entry than the iPhone contact list. That additional entry was not sent one of the unwanted emails, according to the sent folder on the iPhone and according to the sent folder on the AOL email web interface. That suggests the hacking was on the iPhone, not on the AOL email account.
So this _does_ appear to be a case of where the iPhone contact list was used.
Each email said something like 'hello' and included a URL. Each email had a different URL.  Here are some examples.
example #1
Subject line: Fw: [2]
Message body:
Hey there!
http://70310be.netsolhost.com/-news.twitter.com?exzocjru123456
example #2
Subject line: Re:
Message body
Hey there!
http://tonetruck.com/-news.facebook.com?ymuxadin316557
example #3
Subject line: Fw: (3)
Message body
Hallo!
http://www.blue-bleu-bleue.jp/-news.twitter.com?ovjpogo564105
example #4
Subject line: Fw:
Message body
Hey there!
http://czylkows.webd.pl/-news.google.com?bonaka915857
I changed the numbers in the above URL lines from their actual values because I don't want to help the bad guys find me, but each was 6 digits long at the end of the line.
Yes, I have changed the AOL email password now on both the AOL website and on the iPhone.
I thought something like this happened to Facebook users a while ago, and it ended up being some virus or worm or something.
It sure seems like the iPhone was hacked from what I can see. No, this iPhone is not jailbroken.
Has anyone else experienced this?
Any solutions?

I don't have an iPhone, I have a Note 3 with a security program on it.
I got a similar message in my email this morning.   It had the name of one of my Facebook contacts.   When I highlight the name, it shows a different email completely.   It looked like it was sent from a known contact, I don't know how that is faked, but it is.
The email warned my my Comcast email had been hacked and I should send this warning email to all the listed contacts.   It actually had many of my contact emails in the email.
Here's the weird part - and how
I know it was fake.    I never set up an email with Comcast.   Only used Comcast for 2 months and no longer have the account.   
So I marked the email as SPAM and deleted it.
Please SPAM this on your device also

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