In a large saucepan over a medium-low heat, warm the oil. Add onion and saute for 3 to 5 minutes. Mix in green peas, bay leaf, and jasmine rice. Stir to coat the rice.
Pour 3 cups water into the saucepan and add the salt. Increase the heat to medium and let the rice come to a quick simmer. Reduce heat to low and let rice simmer lightly and sit uncovered until all of the liquid is absorbed. Cover the rice and remove from heat, let sit approximately 40 minutes.