What were the effects of Saladin’s capture of Jerusalem?

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Saladin’s reconquest of Jerusalem in 1187 prompted Pope Gregory VIII to organize the Third Crusade. From 1189 to 1192, Saladin lost Acre and Jaffa and was defeated in the field at Arsūf. The Crusaders retreated to Europe without seizing Jerusalem, but Saladin’s military reputation had been damaged. He died in 1193.