Is “Embargo” a Scrabble word?

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Yes
EMBARGO
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Valid

Meaning of Embargo

/ɪmˈbɑːɡəʊ/

noun
  1. 1.An order by the government prohibiting ships from leaving port.

  2. 2.A ban on trade with another country.

  3. 3.A temporary ban on making certain information public.

    This copy of the federal budget is under embargo until 2 p.m.

verb
  1. 1.To impose an embargo on trading certain goods with another country.

  2. 2.To impose an embargo on a document.