Heat the olive oil in a frying pan, add the onion and green pepper, cook until tender.
Add the chopped tomatoes with their juice, garlic, jalapeno, if using, oregano, salt, hot pepper sauce, and water. Simmer, covered for 20 minutes.
Uncover. Break the eggs, one at a time, into a cup and then slip each into the sauce.
Cover and simmer over low heat until the eggs are set, about 5 minutes.
Serve over tortillas or toasted English muffins, topped with some of the sauce.