Clue: Natural amphitheatres created by state of affairs, we hear (7)
Answer: CIRQUES
Explanation: Definition: Natural amphitheatres
Homophone of "circs", slang shortening of "circumstances"; when I've had cause to use this word (I'd be more likely to use the Gaelic-derived "corrie") I've pronounced it in French style as "seerk", but Chambers only gives the anglicised version