Pacify situation around area, with temperature lower (7)
I believe the answer is:
placate
'pacify situation' is the definition.
'placate' can be an answer for 'pacify' (synonyms). I'm not sure about the 'situation' bit.
'area with temperature lower' is the wordplay.
'area' becomes 'place' (place is a kind of area).
'with' means one lot of letters goes inside another.
'temperature lower' becomes 'at' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'place' going around 'at' is 'PLACATE'.
'around' is the link.
Can you help me to learn more?
(Other definitions for placate that I've seen before include "Make less angry" , "Calm, pacify, appease" , "Make calm, conciliate" , "Pale cat could pacify" , "Mollify, calm down" .)