iTerm2 has a good multilingual features, but it misses the support of one large group of languages, which are those known as right-to-left (RTL) languages, such as Arabic, Hebrew, Farsi, Urdu and others.
The native macOS' Terminal app supports these languages, as can be seen in the attached screenshot.

iTerm2 correctly renders the RTL characters and does
text shaping, but it lacks
text mirroring. So, it is half a way there! macOS has native support for RTL languages and many mac apps support them by default. I think iTerm2 only needs some settings adjustment in its source code to support RTL as well.
Thank you