Set a wire rack or steamer trivet inside the bowl of a 6-quart or larger Instant Pot. Place the carrots on top of the rack. Pour in the water. Lock the lid and set the valve to seal. Set the cook time at high pressure for 2 minutes, and then quick release the pressure inside.
Carefully open the lid and set the carrots aside. Discard the water in the inner pot, dry with a clean kitchen towel and set to sauté. Once hot, add in the butter and the cooked carrots. Sprinkle in the brown sugar, honey, salt, pepper and crushed red pepper flakes. Sauté for 2 minutes until the sugar melts and the carrots are fully coated. Serve immediately with a sprinkle of fresh parsley and Za'atar seasoning, if using.