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Combine the rice, water, and 1/4 tsp salt in a medium saucepan and bring to a boil over high heat. Reduce the heat to low, cover, and cook until the water is fully absorbed and the rice is tender, about 18 minutes. Remove from heat and let sit, covered, for 5 minutes, then fluff with a fork.
While the rice cooks, heat the olive oil in a large skillet over medium-high heat until shimmering. Add the onion and cook, stirring occasionally, until softened and translucent, about 4–5 minutes.
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