Heat the olive oil in a large skillet over medium heat. Add the diced onion and red bell pepper. Cook for about 5 minutes until the onion becomes soft and translucent.
Stir in the minced garlic, paprika, ground cumin, chili powder, cayenne, and sugar, if using. Cook for another minute until the spices are fragrant.
Pour in the can of whole peeled tomatoes and use a spoon to break the tomatoes into smaller pieces. Season the sauce with salt and pepper. Bring the sauce to a simmer. Create small wells in the sauce and crack an egg into each well. Adjust seasonings as needed.
Cover the skillet and cook for 5 to 7 minutes or until the egg whites are set. Garnish with chopped cilantro or parsley before serving.