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Heat a 12-inch skillet over medium-low heat and add ¼ cup olive oil.
Add the diced onions and sauté until tender, about 2-4 minutes. Season with salt and pepper.
Add the minced garlic and sauté for 30 seconds to 1 minute.
Add ½ cup chardonnay and let it reduce by half, about 2 minutes.
Add the drained whole peeled San Marzano tomatoes and the water from the can.
Add 1 ½ teaspoons dried parsley and 1 ½ teaspoons dried basil. Season with salt and pepper.
Bring to a simmer and let cook for 25-30 minutes, stirring occasionally.
Taste and adjust seasoning as needed.
Serve with fresh sliced basil.