Embargo absorbing English leader of overseas party (5)
I believe the answer is:
beano
'party' is the definition.
(I've seen this before)
'embargo absorbing english leader of overseas' is the wordplay.
'embargo' becomes 'ban' (I've seen this before).
'absorbing' is an insertion indicator.
'english' becomes 'e' (abbreviation).
'leader of' suggests taking the first letters.
The initial letter of 'overseas' is 'o'.
'ban' placed around 'e' is 'bean'.
'bean'+'o'='BEANO'
(Other definitions for beano that I've seen before include "Junket - children's comic" , "Rowdy jollification" , "Comic and informal get-together" , "Celebration" , "binge" .)