Cryptic crossword clue
Compound in the southern States holds the leaders of Oman and Djibouti in isolation 7

The most common and most likely answer to this crossword clue is the 7 letter word DIOXIDE

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The cryptic/wordplay part
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This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
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What does DIOXIDE mean?

DIOXIDE noun
  1. Any oxide containing two oxygen atoms in each molecule.

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