While the water is heating up, heat the olive oil in a skillet over medium heat. Add the shallot, garlic, sun-dried tomatoes, tomato paste, Italian seasoning and a pinch of salt & pepper. Cook down for a couple minutes, stirring frequently. Pour in the tomatoes and bring to a boil. Once the sauce starts to bubble, lower the heat and simmer for 10 minutes.
Once the water is boiling, add the gnocchi and cook until they float to the top - about 3 minutes. Drain the gnocchi.
Add the basil to the sauce, taste it and adjust the seasonings as needed. Add the drained gnocchi to the sauce and toss to coat.