Heat olive oil in a large skillet over medium heat. Add onion and cook until softened.
Stir in garlic and cook for about 30 seconds until fragrant.
Pour in the crushed tomatoes, oregano, and red pepper flakes. Season with salt and pepper.
Bring sauce to a gentle simmer and let it cook for 10 minutes, stirring now and then.
Add the gnocchi directly into the skillet. Stir well so the gnocchi is coated in sauce.
Cover and cook for 5 minutes until gnocchi is tender and plump.
Stir in fresh basil leaves just before serving.
Top with grated parmesan cheese and enjoy warm.