Heat the Oil:

In a large saucepan or Dutch oven, heat the olive oil over medium heat.

Sauté Onions and Garlic:

Add the chopped onions to the pan and sauté until they become translucent, about 5 minutes. Stir in the minced garlic and cook for another minute until fragrant.

Add Tomatoes and Tomato Paste:

Pour in the canned tomatoes along with their juice. If you prefer a smoother sauce, you can crush the tomatoes by hand or use a blender. Stir in the tomato paste.

Season:

Add the dried oregano, dried basil, salt, black pepper, and bay leaf. If the tomatoes are very acidic, add the optional sugar to balance the flavors.

Simmer:

Bring the sauce to a gentle boil, then reduce the heat to low. Cover the pan partially with a lid and let the sauce simmer for about 30-40 minutes, stirring occasionally. The sauce should thicken and deepen in flavor.

Adjust and Serve:

Taste the sauce and adjust the seasoning if necessary. Remove the bay leaf. If you prefer a smoother sauce, blend with an immersion blender until the desired consistency is reached. Garnish with fresh basil if using.