Heat oil in saucepan over medium-high heat about 1 minute. Add onion and garlic, sauté until onions are translucent, about 5 to 6 minutes. Add Italian seasoning and red pepper flakes. Stir until fragrant.
Stir in wine and sugar. Add tomatoes and tomato paste, bring to low boil. Reduce heat, cover and simmer for about 15 minutes. Stir in basil leaves, and remove sauce from heat when leaves turn bright green.