Open both cans of tomatoes and pour them into a large bowl. Use your hands to squeeze and crush each tomato into rough pieces. Set aside with all juices.
Heat olive oil in a Dutch oven over medium heat. Add diced onion and cook for 8-10 minutes until soft and translucent. Add minced garlic and cook for 1-2 minutes until fragrant.
Push onion and garlic to the sides, add tomato paste to the center, and cook for 1-2 minutes until it deepens to a brick-red color. Stir into the aromatics.
Pour in crushed tomatoes and their juices. Add sugar, oregano, red pepper flakes (if using), salt, and black pepper. Stir well to combine.
Bring sauce to a gentle boil, then reduce heat to medium-low and partially cover. Simmer for 30-45 minutes, stirring every 10 minutes, until thickened.
For a smooth sauce, use an immersion blender to purée directly in the pot. For a rustic sauce, leave chunky and break up any large pieces with a spoon.
Stir in optional butter until melted. Remove from heat, add torn fresh basil, and season to taste. Serve immediately or store for later.