December 8 – The Treaty of Falaise: Captured by the English, William I is forced to sign a peace agreement. The treaty makes Scotland a feudal possession of England, William and his nobles swear allegiance to Henry II. He must hand over several castles to Henry in return for his freedom.[1]
Europe
Summer – French forces under King Louis VII, supported by Henry the Young King and Philip of Alsace, encircle Rouen. The city holds out against the war engines long enough for Henry II to arrive in the middle of August to stage a rescue. The besiegers are fearful that Henry will invade France and the siege is lifted.
November 23 – Saladin arrives at Damascus and spends the night at his father's old house, until the gates of the Citadel of Damascus are opened to him, after a brief siege by his brother Tughtakin ibn Ayyub.[7]
Egypt
July 25 – The Sicilian fleet (some 250 ships) under Admiral Tancred launches a failed attack against Alexandria. But he is deprived of support and forced to sail away after a seven-day blockade on August 1.[8]
Saladin sends his brother Turan-Shah with an army and supporting fleet to conquer Yemen. This to consolidate Muslim control over the Red Sea while protecting the pilgrimage route from Egypt to Mecca.[9]