Gather all your ingredients. Peel and devein the shrimp, chop the onion, garlic, bell pepper, and carrot.

In a large pot, heat the olive oil over medium heat. Add the chopped onion, garlic, bell pepper, and carrot. Cook for about 5 minutes until the vegetables soften.

Once the vegetables are softened, add the chili powder, smoked paprika, cayenne pepper, and ground cumin to the pot. Stir well to combine and let the spices cook for 1-2 minutes.

Pour in the diced tomatoes and chicken broth. Bring the mixture to a boil. Once boiling, add the shrimp and cook for 3-4 minutes until the shrimp are pink and opaque.

Add lime juice, salt, and pepper to taste. Stir in chopped fresh chili peppers and cilantro if using.

Ladle the soup into bowls and enjoy hot. Serve with crusty bread or over rice for a more filling meal.