Bring water and olive oil to a boil in a covered saucepan; stir in salt. Place rice in a 9x13-inch baking dish. Pour water mixture over rice; cover baking dish tightly with double layer of aluminum foil.
Bake in the preheated oven until water is absorbed, about 1 hour.
Remove rice from oven, uncover, and fluff with fork. Cover with paper towels until steam is absorbed, about 5 minutes. Uncover and cool slightly, about 5 minutes more.