In a blender or food processor, pulse the diced tomatoes and seasonings (Italian seasoning, dried onion, garlic powder, red pepper flakes) until smooth.
Heat the extra virgin olive oil in a saucepan over medium heat, and pour in the tomato mixture. Stir frequently, allowing it to simmer for 4-5 minutes to develop some flavor in the tomatoes.*
Stir in the coconut milk and chicken broth, and season with salt & pepper to taste.
Keep cooking until the soup is warmed through. Garnish with chopped fresh basil, and serve hot!