Prepare two 1/2 pint jars and one 1/4 pint jar. Bring a boiling water bath to a boil.
In a large pot, combine sugar and water. Bring to a simmer and stir until the sugar has dissolved. Add four tea bag to pot and let them simmer for five minutes.
When time is up, remove tea bags and add sliced peaches. Let simmer for approximately ten minutes, tasting regularly to monitor the intensity of flavor. When the balance of peach and oolong tastes good to you, strain the liquid through a fine mesh sieve, pressing gently on peaches to remove as much liquid as possible.
Return syrup to pot and add two tablespoons powdered pectin. Bring to a rapid boil and monitor temperature. When the jelly liquid reached approximately 220 degrees, it is done.
Remove pot from heat and pour jelly into prepared jars. Wipe rims, apply lids and rings and process in a boiling water canner for ten minutes.
When time is up, remove jars from canner and let cool on a dish towel. When jars are cool, remove rings and test seal. Store any unsealed jars in the refrigerator. Unopened jars of jelly will keep on the shelf for up to one year.