Preheat oven to 325°F. Season steak with salt and pepper. Heat oil in a large oven-proof saucepot or Dutch oven over medium-high heat. Brown beef well on all sides. Remove and set aside.
Cook red peppers and onion about 5 minutes or until browned, stirring frequently. Add jalapenos and garlic and cook about 30 seconds. Return beef to pot and add remaining ingredients. Bring to a boil. Cover and place saucepot in oven for 3 hours or until beef is very tender.
Remove brisket from pot and shred meat with fork. Return shredded meat to pot with sauce and simmer about 15 minutes. Serve over hot cooked rice or in tortillas.