Add the olive oil to a large saucepan or dutch oven and heat over medium-high. Add onion and saute for 3-5 minutes, until translucent. Add garlic and saute a minute more. Add the tomato paste and cook, stirring frequently for 2 minutes.
Add the wine and whisk to combine with the tomato paste. Stir in the diced and crushed tomatoes, Italian seasoning and bay leaf. Bring to a boil and then let simmer for 15 minutes.
Stir in the sundried tomatoes and bell pepper. Simmer until pepper is tender. Stir in parsley, balsamic vinegar and season with salt and pepper (if desired).