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Heat a large saucepan to medium heat and add olive oil with onion and peppers. Cook about 5 minutes, or until everything softens.
Add the garlic and cook another minute, until garlic becomes fragrant.
Add remaining ingredients and stir until everything is combined.
Bring to a boil, then reduce heat and simmer about 20-30 minutes.
Process until smooth. If the sauce is too thick, add a ½ cup of water or more and continue to process to your preferred consistency. Serve the sauce right away, or let it sit awhile to allow the flavors to more fully develop.