'Understandable' I think so.

Understanding isn’t correct here, while you can use it as a noun it doesn’t really make sense here. You could say: The situation is understood now (using the passive form, implying that people understand the situation) Or We have come to an understanding regarding the situation (here “come to an understanding” has a similar meaning to “come to an agreement”) Are either of these what you meant?

What about "The situation looks clear now."?