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Balian of Ibelin surrendered Jerusalem to Saladin, who allowed the citizens to leave by paying a ransom. With the defeat of Jerusalem it signaled the end of the first Kingdom of Jerusalem.
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The Third Crusade would be led by Frederick I Barbarossa of Germany, Philip II Augustus of France, and Richard I Lionheart of England.
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An army commanded by Saladin made an amphibious assault on the city of Tyre, defended by Conrad of Montferrat. After two months of continuous struggle, Saladin dismissed his army and retreated to Acre.
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The Siege of Acre was one of the first confrontations of the Third Crusade, lasting from August 28, 1189 until July 12, 1191, and the first time in history that the King of Jerusalem was compelled to personally see to the defence of the Holy Land. It was also the deadliest event of the whole period of the Crusades for the Christian ruling class of the east.
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Philip II Augustus of France arrives at Acre to participate in the Third Crusade
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Barbarossa drowned in a river after attempting to swim across with his horse to meet his son. His horse and himself were both killed.
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Richard I, King of England, arrives at Tyre, but Conrad of Montferrat refuses to allow Richard to enter the city. He's not even allowed to drop anchor in the city's harbor.
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The Battle of Arsuf was a battle of the Third Crusade in which Richard I of England defeated Saladin, founder of the Ayyubid dynasty and Sultan of Egypt and Syria, at Arsuf in Palestine.
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The Treaty of Jaffa puts an end to hostilities of the Third Crusade.