A fire breaks out in the new Song capital of Hangzhou; the government suspends the requirement of rent payments, alms of one hundred and eight thousand, eight hundred and forty kilograms (one hundred and twenty tons) of rice are distributed to the poor, and items such as bamboo, planks, and rush-matting are exempt from government taxation.

Remnants of the Liao, defeated by the Jurchen in their homeland in the north and northeast of modern day China, flee westward into Central Asia by way of Mongolia in 1125; led by by Yelü Dashi, who also recruits warriors from various tribes and moves westward.

Yelu occupies Balasagun on the Chu River, then defeats the Western Karakhanids in Khujand in 1137.

Al-Mustarshid had been succeeded by his son Al-Rashid.

Like his father, ar-Rashid makes another failed attempt at independence from the Seljuq Turks.

To avenge his father's death, he insults Sultan Mas'ud's envoy, who comes to demand a heavy largess, incites the mob to plunder his palace, and then, supported by Zengi, who is equally hostile to the Sultan because of the murder of Dubeis, sets up a rival Sultan.

Mas'ud hastens to the rebellious capital and lays siege to it.

Baghdad, well defended by the river and its canals, resists the attack; but in the end, the Caliph and Zengi, hopeless of success, escape to Mosul.

The Sultan's power restored, a council is held, the Caliph deposed, and his uncle, Al-Muqtafi, appointed as the new Caliph.

Ar-Rashid flees to Isfahan, where he will be killed by Hashshashins in 1138.

Raymond, the son of Pons of Tripoli and Cecile of France, marries Hodierna of Rethel, daughter of Baldwin II, King of Jerusalem, in 1137.

Shortly after the wedding, Tripoli is invaded by the sultan of Damascus in 1137, and Count Pons is taken prisoner and later executed with most of the other Frankish prisoners.

He is succeeded by his son as Raymond II.

Raymond had been present at the battle, and considers the Syrian Christians of Tripoli responsible for the treachery which led to his father's defeat and death.

Therefore, after the battle he takes many of them prisoner, and as William of Tyre says, "visited upon them divers tortures in the presence of the people, and, in just proportion to the enormity of the crime which they had committed, he caused them to suffer death in its most cruel forms."

This act is praised by the Latin Christians of the county; "Such", William continues, "were the first proofs of valor which were given by the young count, whereby he won the affection of all his people and universal approval."

Leo’s three sons had quarreled in his absence: the eldest, Constantine, had eventually been captured and blinded by his brothers.

Meanwhile, the Danishmend emir, Mohammed II ibn Ghazi, had invaded Cilicia and destroyed the harvest.

Shaken by these disasters, Leo buys his freedom by offering to give up the Cilician cities (Sarventikar, Mamistra and Adana) to Raymond I; in addition he pays sixty thousand gold pieces and gives his son as a hostage; but on his return home he forgets his promise.

A desultory war breaks out again, until, early in 1137, Joscelin II patches up a truce between the combatants.

An alliance is then formed against the Emperor John II Komnenos, who is now pressing his claims against Antioch as well as Cilicia.

Leo moves up in an attempt to check its progress by taking the imperial frontier fortress of Seleucia, but is forced to retire.

The Emperor sweeps on, past …

…Tarsus, …

…Adana and …

…Mamistra, which all yield to him at once.