Heat the olive oil in a saucepan over medium heat until shimmering and fragrant.
Add the finely chopped onion and cook, stirring occasionally, until it becomes translucent and soft, about 5 minutes.
Stir in the minced garlic and cook for another 30 seconds until fragrant, being careful not to burn it.
Add the chopped tomatoes to the saucepan, stirring well to combine with the aromatics.
Bring the mixture to a gentle simmer, then reduce the heat to low and cook uncovered for 20-25 minutes until the sauce thickens and the tomatoes break down, releasing a rich aroma.
Stir in smoked paprika, balsamic vinegar, salt, and black pepper, blending the flavors evenly into the sauce.
Taste and adjust seasoning if needed, then turn off the heat and fold in the chopped fresh basil for a bright herbal finish.
Let the sauce rest for a few minutes so the flavors meld, then serve it hot over pasta, grains, or your favorite dish.
