Begin by rinsing the 2 cups of basmati rice under cold water until the water runs clear, then let it drain in a strainer.
While the rice is draining, soak a pinch of saffron threads in 2 tablespoons of hot water for about 10 minutes.
In a medium saucepan, heat 2 tablespoons of olive oil over medium heat. Add the diced onions and sauté until translucent, about 5 minutes.
Add the rinsed basmati rice to the saucepan and toast for about 2 minutes, stirring frequently.
Pour in 3 cups of broth along with the soaked saffron and its water. Add 1 teaspoon of salt and stir to combine.
Increase the heat to bring to a gentle boil, then reduce the heat to low and cover the saucepan with a tight-fitting lid.
Let the rice simmer on low heat for about 15-20 minutes, or until the liquid is absorbed and the rice is tender.
Remove from heat and let it sit covered for another 5 minutes. Use a fork to fluff the rice gently before serving.
