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May 1 - Battle of Cresson - Saladin defeats the crusaders

July 4 - Saladin defeats Guy of Lusignan, King of Jerusalem, at the Battle of Hattin.

September 20 - October 2 - Siege of Jerusalem - Saladin captures Jerusalem.

October 21 - Pope Gregory VIII succeeds Pope Urban III as the 171st pope.

October 29 - Pope Gregory VIII issues the bull Audita tremendi, proposing the Third Crusade.

December 19 - Pope Clement III succeeds Pope Gregory VIII as the 172nd pope.

Alexius Branas attempts to seize Constantinople in defiance of his master Isaac II Angelus.

Cathedral of St. Jacob consecrated in Szczecin, Pomerania

Destruction of Sigtuna - archbishop is killed

Knut Eriksson builds a castle in the island of Stockholm

Compass in Europe

The Toltecs are deposed at Chichen Itza

Zen Buddhism comes to Japan

King of Ankor Vat, Jayavarman VII defeats Cham conquerors

Ghorin Muhammed conquers Punjab

Genoa takes Bonifacio (in Corsica) from Pisa

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September 5 - King Louis VIII of France (died 1226)

Arthur I, Duke of Brittany (died 1203)

Vladimir III Rurikovich, Grand Prince of Kiev (died 1239)

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July 4 - Raynald of Chatillon, Prince of Antioch (executed)

October 19 - Pope Urban III

November 9 - Emperor Gaozong of China (b. 1107)

December 17 - Pope Gregory VIII

Gerard of Cremona, Italian translator of scientific works

Roger de Moulins, Grand Master of the Knights Hospitaller

Count Raymond III of Tripoli