News reaches the ears of the world that the Sicilians, or the Italians, have pushed forward into the Holy Roman Empire, annexing Ancona, Ferrara, and Pisa. The Geonese join the Sicilians in their war, as do the Venetians, and they move to strike against imperial possessions in Lombardy.

The men of Castile once more score a stalemate against the Almohad armies trying to reconquer Iberia, however, the Leonese successfully drive the isolated garrison of Grenada into the sea, taking the fortress as their own as the Aragonese and the Navarrans conquer their way down the Iberian coast. The portugese blockade the straights of Gibraltar with their fleet after winning a Pyrrhic victory over the Africans.

The Hungarians move to attack the Germans, but are repelled by the Duke of Austria. The Polish are defeated at Brandenburg by a formidable Imperial Force, while the Romans declare war on the Hungarians after the victory in the Crusade, annexing Dalmatia, Bosnia, and half of Croatia.

The Romans issue an ultimatum to the Antiocheians as a huge roman army is encamped outside Antioch, led by Emperor Manuel. The Antiocheians accept the ultimatum in the face of overwhelming odds, and the Prince accepts to become a roman vassal of the Emperor.

The Jerusalemites destroy the Egyptians in the storming of Cairo, capturing the Fatimid Caliph and his retinue, laying waste to the city. The Jerusalemites keep a small garrison in Cairo as they move north, laying siege to Alexandria. The Egyptians stubbornly refuse to accept the peace treaty.