Heat the olive oil in a heavy-bottomed pot over medium-high heat and sear the beef stew meat until browned on all sides.
Remove the beef from the pot and set aside, then add the pearl onions, sliced carrots, and halved mushrooms to the same pot.
Sauté the vegetables for 5 minutes until they begin to soften, then stir in the minced garlic and tomato paste for one minute.
Pour in the red wine to deglaze the pot, using a wooden spoon to scrape up the flavorful browned bits from the bottom.
Return the beef to the pot and add the beef broth, cubed red potatoes, fresh thyme, bay leaf, sea salt, and black pepper.
Bring the liquid to a gentle boil, then reduce the heat to low, cover, and simmer for 75 minutes until the beef is fork-tender and the sauce has thickened.