In a large pot, heat the olive oil over medium heat. Add the chopped onion and sauté until translucent, about 5 minutes.

Add the minced garlic and sauté for an additional minute until fragrant.

Stir in the chopped fresh tomatoes, vegetable broth, sugar, salt, black pepper, and basil. Bring to a boil.

Reduce heat and let simmer for about 20 minutes, allowing the flavors to meld.

Remove from heat and let cool slightly. Blend the soup using a blender until smooth.

Return the blended soup to the pot and heat through. Adjust seasoning if necessary.

Serve hot, garnished with fresh basil if desired.