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Shrimp with Sherry-Tomato Sauce

['1 large onion, quartered', '1 (28-ounce) can whole tomatoes in juice', '3 tablespoons extra-virgin olive oil', '1 1/2 pounds peeled and deveined large shrimp (not cooked)', '3/4 teaspoon salt', '1/2 teaspoon black pepper', '4 garlic cloves', '1/3 cup Sherry', '3/4 cup pitted green olives (from an 8-ounce jar), chopped if large', 'Accompaniment: white rice']

Pulse onion in a food processor until finely chopped, then transfer to a bowl. Add tomatoes with juice to processor and pulse until chopped.
Heat oil in a 12-inch heavy skillet over high heat until hot but not smoking. Toss shrimp with 1/2 teaspoon salt and 1/4 teaspoon pepper, then add to skillet and sauté, turning over once, until just cooked through, about 3 minutes total. Transfer shrimp to a plate with tongs (do not clean skillet).
Force garlic through a garlic press into skillet and cook, stirring, until golden, about 15 seconds. Stir in Sherry, scraping up any brown bits from bottom of skillet, then add onion and remaining 1/4 teaspoon salt and 1/4 teaspoon pepper and cook, stirring occasionally, until all of liquid is evaporated and onion is just tender, 5 to 6 minutes.
Add tomatoes and olives and simmer, stirring occasionally, until sauce is slightly thickened, 5 to 7 minutes.
Stir in shrimp with any juices accumulated on plate and heat through. Season with salt.

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