Puree the basil and olive oil in a blender or a food processor.
In a large bowl, combine the flour, yeast and water. Mix well, incorporating the salt at the end. Then mix in the basil puree.
Knead the dough for about 20 minutes. Place the dough in a clean oiled bowl, cover with a towel or plastic wrap and let rise for about 30 minutes or until doubled in size.
Punch down the dough and form it into a round ball. Place the dough on a baking tray covered with a towel and let rise for approximately 1 hour at room temperature.
Preheat the oven to 220C (440F). Just before baking, score the top of the bread with a sharp knife.
Reduce the temperature to 190C (380F) and throw a small amount of water onto the bottom of the oven to create steam. Bake for approximately 30 minutes or until the bread is nicely browned.