Place bacon in a large skillet and cook over medium-high heat, turning occasionally, until slightly browned, about 5 minutes. Cook and stir onion in the bacon grease until onion is transparent, 5 to 10 minutes. Remove bacon from skillet and drain on a paper towel-lined plate; crumble.

Stir chopped tomatoes, tomato sauce, cilantro, jalapeno pepper, salt, pepper, and crumbled bacon into onion; bring to a simmer and cook until flavors blend, about 15 minutes.