Thoughts??
1S, 1W from iron - A decent production site. Wheat and 2 flood plains so it could work those mines. Saladin is rather close to this spot. Later a filler city can be built to grab the sheep and the last flood plain. I would even let them overlap a bit so I could micromanage them better.
1S, 2E from iron - Hybrid city. I'm just a little concerned about production. I guess spot would be more useful as a cottage-city. Another city could be placed 1S of the wheat to get a coastal city.
And as you mentioned, 2S, 1E looks really nice.
If this was my game, I would settle 1S, 1W and backfill later. Maintentance costs would be skyhigh though, so I don't know if it's worth it.