In large skillet cook chopped red sweet peppers and garlic in hot oil over medium heat about 20 minutes, stirring occasionally. (Or, if using peppers from jar, in a 2-quart saucepan cook garlic in oil for 30 to 60 seconds or until light brown. Stir in peppers; remove from heat.) Place the pepper-garlic mixture in blender container or food processor bowl. Cover; blend or process until nearly smooth. Add the water, basil, tomato paste, red wine vinegar, sugar, salt, and black pepper. Cover; blend with several on-off turns until basil is just chopped and mixture is nearly smooth. Transfer to small saucepan. Cook and stir sauce over medium heat until heated through. Makes about 1-2/3 cups sauce.