Events

• Saladin unsuccessfully besieges the Hospitaller fortress of Krak des Chevaliers in modern Syria.
• Newgate Prison is built.
• Richard Lionheart allies with Philip II of France against his father, Henry II of England.
• Giraldus Cambrensis and Baldwin of Exeter travel through Wales attempting to recruit men for the Third Crusade.
• The "Saladin tithe" is levied in England.
• Alfonso IX of Castile becomes king of Leon.
• Queen Tamar of Georgia marries David Soslan .

Births

• March 4 - Blanche of Castile

Deaths

• August 22 - Ferdinand II of Leon
• Usamah ibn Munqidh, Arab chronicler

Heads of states

• England - Henry II Curt Mantle, King of England (reigned 1154 - 1189).
• France - Philippe II, Auguste King of France (reigned from 1180 to 1223)
• Byzantine Empire - Isaac II Angelus, Byzantine emperor (reigned 1185 - 1195)