The Siege of Jerusalem set in motion a pivotal chapter in the struggles between the Crusader states and Muslim leaders in the region. Saladin, a formidable military and political leader, sought to reclaim Jerusalem after years of Crusader rule. As the forces under his command began to encircle the city on September 20, 1187, it became evident that he intended to bring an end to the Crusaders' hold over this vital location. The siege was not merely a military endeavor; it was also steeped in deep religious significance, as Jerusalem was revered by Muslims, Christians, and Jews alike. Saladin's strategy involved not only direct assaults but also psychological warfare, including offers of safe passage to the city's defenders and residents if they surrendered. This highlighted his aim to not only win the city but also to establish a sense of righteousness in his campaign.

As the siege progressed, the defenders of Jerusalem faced mounting pressure from Saladin's forces, who utilized a range of siege engines and tactics. The city's water supply was threatened, and food shortages soon became critical. These actions impeded morale among the inhabitants and defenders, leading to discussions about surrender. The city's eventual fall was marked by both a military victory for Saladin and a significant religious awakening among Muslims, reinvigorating their resolve during the ongoing Crusades. Saladin's capture of Jerusalem in 1187 would later play a vital role in the subsequent dynamics of the Crusades, as it incited a response from European powers, culminating in the Third Crusade.

The siege not only impacted the immediate participants but also reverberated throughout the medieval world. Saladin's approach to warfare—combining military prowess with diplomatic overtures—became a model for later Muslim leaders and reshaped the nature of regional conflict. The fallout from the siege set the stage for future confrontations between Islam and Christianity, marking a significant turning point in the long history of the Crusades.