Combine first four ingredients. Rub onto roast. In skillet, brown roast in olive oil. Place in a roasting pan. Add water, onion, green pepper and seasonings. Cover and bake at 325, for 2 1/2 to 3 hours or until roast is tender.
Remove and keep warm. Discard bay leaf. Skim fat from pan juices. Measure juices and return to pan. For each cup of juices, combine 1 tablespoon flour with 2 tablespoons water; mix well.
Stir flour mixture into pan; cook over medium heat, stirring constantly, until thickened and bubbly. Serve gravy with roast.