In a small saucepan, heat the olive oil over medium-heat. Add the diced onions and cook for 5-8 minutes, or until translucent and tender.
Add garlic cloves, oregano, salt, black pepper and red pepper. Cook for an additional 2-3 minutes.
Pour in the tomatoes, then add in the bay leaf and sugar. Stir until fully combined.
Bring the sauce to a low-boil then lower the heat to medium-low, cover, and allow to cook for 25-30 minutes. Stir occasionally.
Remove the lid, carefully remove the bay leaf, and allow the sauce to cool for about 10 minutes. If using basil, add it here.
Add sauce to the blender, blend until smooth, and pour into a heat-safe bowl.
Stir sauce into pasta, layer into lasagna, or serve as a dipping sauce! It’s a perfect versatile sauce. Enjoy!