Only ten days after the Crusader defeat at Hattin, Conrad of Montferrat arrived with group of Italian knights at the port of Tyre. He had first attempted to land at Acre unaware that the city had fallen to Saladin and once he learnt the truth he turned to Tyre. When he arrived at Tyre he found that it was under siege and on the brink of surrender. Conrad took charge and defied Saladin to attack even though the Muslim leader threatened to kill Conrad's father, the Marquis of Montferrat who he held prisoner. For the moment Saladin decided against an attack.

Jerusalem fell to the Muslims and the al-Asqu mosque was returned to Islam. The Muslims allowed four Christian Priests to hold services in the Church of the Holy Sepulchre. This was in contrast to the first Crusaders who since they first captured the city in 1099 had treated Jerusalem as theirs alone. The Muslim leader was Al-Malik al-Nasir Salad ed-Din Yusuf also known as Saladin. ¹

Saladin turned his attention back to Tyre and offered Conrad gold and the release of his father if the port was surrendered. After Conrad refused to accept the conditions Saladin first ordered an attack by sea. But the crusaders were well prepared and when the Muslim ships entered the harbour a chain was raised behind them and all onboard were killed. With captured Muslim ships, the crusaders were able to drive back any further seaborne attacks.

After failing to take the port by sea, Saladin attempted a land attack, but again the crusaders were too well prepared and came out from their defences and attacked the weary besiegers. Saladin accepted he could not captured Tyre and retreated.

Josias, the Archbishop of Tyre, found King Henry II and Philippe II at Gisors and told them of the defeat at Hattin. Both kings agreed to peace terms and to contribute to a joint Crusade. It was decided to raise a new tax to pay for the endevour. This tax, known as the Saladin Tithe, was imposed on the people of England and France to raise funds for a new Crusade. But the truce between England and France did not last long enough for the planned joint crusade to get underway. ¹

The large army of German crusaders marched towards Constantinople on the way to the Holy Land. But Isaac II, the Byzantine Emperor, had sided with Saladin and was attempting the stop them by attacking the crusaders. But the German army was too strong and they captured Adrianople. A peace treaty was signed by Isaac and Frederick of Germany, the crusaders' leader, that ensured the Germans were given supplies and free passage through to the Holy Land.

Beaufort Castle was captured by Saladin after a long siege from Raynald of Sidon who had offered to hand over the castle to the Muslim leader on the condition that he had three months to remove his family to a place of safety. At the end of the three months Saladin expected the castle to be handed over but found that Raynald had used the time to refortify and supply the castle against a siege. Raynald mde the mistake of begging for more time and was held hostage by Saladin. Raynald's men finally gave up the castle for the release of Raynald.

The fleet left Sicily to sail to Rhodes. On route, three ships were separated from the group and landed on Cyprus at the port of Limassol. The governor of Cyprus at the time was Isaac Dacus Comnenus, who had come to power from trickery. He had sided with Saladin, and treated Richard's ships as the enemy. ¹

King Richard I landed at Tyre and quickly moved towards Acre, where he needed to help an army that was besieging the town which was being held by a garrison of Saladin's troops. By July 12th, the town fell to Richard. Richard held Saladin's men hostage in exchange for 200,000 dinars and the release of 1500 of Richard's own troops who were being held by Saladin. When no ransom was paid, Richard publicly executed 2700 of the garrison. It was at this point that Richard angered Leopold of Austria, who was to imprison Richard as he tried to return to Normandy. Leopold's banner was ripped down from alongside Richard's and the French. The banners indicated that the spoils of war should be shared, but Richard was not prepared the share with Leopold, who had not contributed to the fall of Acre. ¹

Conrad of Montferrat was killed by two Assassins disguised as monks as he walked home. The Assassins, one of whom had been captured alive and questioned, had been sent by their leader Sinan. The suspected reasons for the murder are varied, some theories suggest Conrad had intercepted a shipment of wealthy goods bound for the Assassin Order while others suggest Saladin had ordered the murder of both Conrad and Richard I. Some also suggest it was Richard himself who had ordered the murder.

Saladin was in Jerusalem when he heard the news of the Christian attack on the caravan. It looked certain that the Crusaders would use the resources that they had captured to continue on and attack the city. But Richard decided to return to Jaffa against the wishes of many in his army. While peace negotiations were again sent to Saladin Richard moved his army up to Acre in preparation to leave the Holy Land. When Richard left Jaffa Saladin took his army out of Jerusalem and attacked the city. After three days of assault the walls of Jaffa fell and the Moslems entered. ¹

Richard the Lionheart signed a peace treaty with the Moslem leader Saladin. ¹

Saladin died.