IPA: //ˌsɜːrkəmˈæmbiənt//
KK: /sɜrˈkʌmˌæm.bi.ənt/
Surrounding or encompassing something completely from all sides.
The circumambient atmosphere created a sense of isolation for the small village.
Circumambient is formed from "circum-" (meaning around) and "ambire" (meaning to go around). The word describes something that surrounds or is situated around something else.
Think of something that goes 'around' ('circum-') another thing — that's why circumambient means surrounding.
No commonly confused words.