Combine water, yeast, and sugar in a bowl; stand 5-7 minutes until foamy.
Mix flour, salt, and pepper in a large bowl.
Stir yeast mixture and oil into flour until sticky dough forms.
Knead on floured surface 8 minutes until smooth; flatten slightly, fold in olives, and knead gently to distribute.
Place in oiled bowl; cover with plastic wrap and rise 1.5 hours until doubled.
Turn onto floured surface; shape oval loaf on parchment-lined baking sheet.
Cover loosely; rise 40 minutes, then preheat oven to 425°F.
Score top with 3-4 diagonal slashes; bake 35-38 minutes until golden brown and crusty. Cool on wire rack 20 minutes before serving.