Dice onion and crush garlic. Dice the sundried tomatoes. Set aside.
Heat olive oil over medium heat. Add onion, salt and red pepper flakes (if using) and sauté for about 5 minutes or until soft.
Add the garlic, stir and sauté for another 2 minutes. Add both the crushed and sundried tomatoes, bay leaf, dried oregano, dried basil and coconut sugar. Bring to a boil. Reduce heat, cover and simmer for 20 minutes, stirring occasionally.
Turn off the heat, remove the bay leaf (don't forget!) and add the fresh basil to the sauce, stirring to combine.