Heat olive oil, then add diced onion and red bell pepper. Cook, stirring, until softened, about 3 minutes. Add minced garlic and cook for another minute.
Stir in ground cumin, chili powder, dried oregano, smoked paprika, and cayenne pepper if using. Cook for 30 seconds until fragrant.
Add vegetable broth, water, and bay leaf. Stir well to scrape bits from the pot.
Select ‘Pressure Cook’ or ‘Manual’ and set the time to 45 minutes on high pressure. Allow the Instant Pot to come to pressure, about 10 minutes.