Heat 2 tablespoons oil in large pot or Dutch oven over medium-high heat until it is shimmering
Add the onion, garlic, and bay leaf.
Cook, stirring frequently, until the onion is translucent, about 3 to 5 minutes.
Stir in the tomatoes and their juice. Using potato masher, mash until no pieces bigger than 2 inches remain.
Stir in sugar and bread; bring soup to boil.
Reduce the heat to medium and cook, stirring occasionally, until the bread is completely saturated and starts to break down, about 5 minutes.
Remove and discard bay leaf.
Transfer half of soup to blender.
Add 1 tablespoon oil and process until soup is smooth and creamy, 2 to 3 minutes. Transfer to large bowl and repeat with remaining soup and oil.
Rinse out the pot you cooked the soup in and return the soup to the pot.
Stir in up to 2 cups of chicken (or vegetable) broth until soup reaches desired thickness.
Return soup to boil and season to taste with salt and pepper.
Optional garnishes include chopped parsley, fresh chopped basil or croutons.