Start by rinsing your small peppers under cold water. Pat them dry with a paper towel. Slice them in half for more spice or keep them whole for milder flavor.
In a small saucepan, combine the distilled white vinegar, sugar, and kosher salt (or pickling salt). If using olive oil, add it now.
Place the saucepan over medium heat and stir until the sugar and salt dissolve completely. Do not boil; just warm enough to combine.
Add your prepared peppers to the saucepan and stir them into the vinegar solution, ensuring they’re well-coated.
Allow the mixture to simmer on low heat for about 5-10 minutes to meld the flavors. Adjust simmering time for desired intensity.
Remove from heat and let the sauce cool to room temperature. Transfer to a glass jar or bottle and seal tightly. Store in the refrigerator.