Heat oil in a medium saucepan over medium heat. Once hot, add onion and cook until softened, stirring occasionally, about 5 minutes. Stir in garlic and peaches, cooking for another 2 minutes.

Reduce heat to low and add remaining ingredients, stirring well to combine. Bring to a simmer and cook for 5 minutes, until the mixture is thickened slightly.

Remove from heat. Use an immersion blender to blend the mixture until smooth. You can also pour it into a blender and blend until smooth, if needed.