Grilled Squid With Lemon Caper Sauce

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1/3 cup pitted Sicilian or other green olives

3 tablespoons salted capers, rinsed

3 tablespoons fresh lemon juice

2 tablespoons white wine vinegar

12 basil leaves

1 garlic clove, peeled

2 teaspoons extravirgin olive oil, divided

1/4 cup water

1 cup red bell pepper strips

1/2 cup thinly sliced red onion

1 pound cleaned skinless squid

1/8 teaspoon salt

1/8 teaspoon freshly ground black pepper

Cooking spray

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