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Season short ribs generously with salt and pepper.
Heat olive oil in a Dutch oven over medium-high heat. Sear the ribs in batches until deeply browned on all sides. Set aside.
In the same pot, add chopped onion and carrots. Cook until softened, about 5–7 minutes. Stir in garlic and tomato paste and cook for 1 minute.
Deglaze the pot with red wine or broth, scraping up any browned bits. Let it simmer for a few minutes to reduce slightly.
Add beef broth, thyme, bay leaf, and balsamic vinegar (if using). Return the ribs to the pot, submerging them in the liquid.
Cover and braise in a 325°F oven for 2.5 to 3 hours until the meat is fork-tender.
Remove ribs and reduce the sauce on the stovetop if needed. Skim off excess fat. Taste and adjust seasoning.
Serve hot, spooning sauce over the ribs. Pair with mashed potatoes or creamy polenta.