The French embargo on Middle Eastern country (7)
I believe the answer is:
lebanon
'middle eastern country' is the definition.
(country in the Middle East)
'the french embargo on' is the wordplay.
'the french' becomes 'le' ('the' in French).
'embargo' becomes 'ban' (a ban on trade).
'le'+'ban'+'on'='LEBANON'
(Other definitions for lebanon that I've seen before include "Middle Eastern country" , "far from home here" , "Republic on Mediterranean" , "Neighbour of Israel" , "Country with cedars" .)