Heat olive oil in a large pot over medium high heat. Add onion and cook until softened, about 5 minutes.
Add garlic. Cook until fragrant, about 30 seconds.
Add tomato paste. Cook, stirring constantly, 1-2 minutes or until tomato paste develops a deep color.
Add diced tomatoes, wine, water, spices, salt and sugar. Bring to a simmer and cook 30 minutes, stirring occasionally.
Optional: Depending on your sauce consistency preference, blend sauce using an immersion blender or traditional stand blender. I like to leave mine a little chunky, but it is completely up to you how smooth you want to make your sauce!
Add vinegar. Feel free to add more to taste!