imbroglio

imbroglio \im-BROHL-yoh\, noun:
1. A complicated and embarrassing state of things.2. A confused or complicated disagreement or misunderstanding.3. An intricate, complicated plot, as of a drama or work of fiction.4. A confused mass; a tangle.
The political imbroglio also appears to endanger the latest International Monetary Fund loan package for Russia, which is considered critical to avoid a default this year on the country's $17 billion in foreign debt.-- David Hoffman, "Citing Economy, Yeltsin Fires Premier", Washington Post, May 13, 1999
Worse still, hearings and investigations into scandals -- from the imbroglio over Clarence Thomas's Supreme Court nomination in 1991 to the charges of perjury against President Clinton in 1998 -- have overshadowed any consideration of the country's future.-- John B. Judis, The Paradox of American Democracy
To the extent that Washington had a policy toward the subcontinent, its aim was to be evenhanded and not get drawn into the diplomatic imbroglio over Kashmir.-- George Perkovich, India's Nuclear Bomb
The imbroglio over the seemingly arcane currency issue threatens to plunge Indonesia -- and possibly its neighbors as well -- into a renewed bout of financial turmoil.-- Paul Blustein, "Currency Dispute Threatens Indonesia's Bailout", Washington Post, February 14, 1998
Imbroglio derives from Italian, from Old Italian imbrogliare, "to tangle, to confuse," from in-, "in" + brogliare, "to mix, to stir." It is related to embroil, "to entangle in conflict or argument."