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Heat the oil over medium high heat in a skillet. Add the peppers, onions, garlic, salt and pepper. Cook, stirring, about 3 minutes or until crisp tender. Then add the tomatoes and saffron. Cover and simmer 10 minutes.
Meanwhile, melt the butter in a skillet large enough to hold the chicken breasts in one layer. Season the chicken with salt and pepper. Cook over medium heat until lightly browned, about 4 minutes. Turn the pieces, reduce the heat and cook about 5 minutes or until done. Do not overcook. Transfer the chicken to a warm platter and keep it warm.
Add the shallots to the skillet and cook until wilted. Do not brown. Pour in the wine and scrape the bottom with a wooden spatula to dissolve any brown particles that may cling to the bottom of the skillet. Reduce the wine almost completely and add the chicken broth. Let this cook until it is almost totally reduced. Add the chicken breasts and any liquid that may have accumulated. Add the pepper and tomato mixture, bring to a simmer and add the parsley. Serve with rice.