Heat olive oil in a saucepan over medium heat. Add chopped onion and sauté until translucent (3-4 minutes). Stir in garlic and cook for 30 seconds until fragrant.
Pour in crushed tomatoes and tomato paste. Stir well. Add sugar (if using), dried basil, oregano, salt, and pepper. Mix and bring to a simmer.
Reduce heat to low and let the sauce simmer uncovered for 20-25 minutes, stirring occasionally, until thickened.
For a smoother sauce, use an immersion blender or transfer to a blender and pulse until desired consistency.
Adjust seasoning if needed. Garnish with fresh basil and use as desired!