Cut jalapeño peppers in half; remove and discard seeds, if desired. Process jalapeño peppers and next 3 ingredients, in batches, in a food processor or blender until smooth, stopping to scrape down sides.
Cook pepper mixture, crushed tomatoes, and next 5 ingredients in a large stockpot or 2 large Dutch ovens over medium-low heat, stirring occasionally, 3 hours or until thickened. Stir in red pepper.
Pack hot mixture into hot, sterilized pint-size jars, filling to 1/2 inch from top. Remove air bubbles; wipe jar rims. Cover at once with metal lids, and screw on bands.
Process in boiling water bath 20 minutes.