Heat olive oil in a large nonstick skillet over medium-high heat. Add onion, and sauté 10 minutes or until soft, stirring frequently.
Add tomato; cook 10 minutes or until the liquid almost evaporates, stirring frequently. Add potato and next 6 ingredients (potato through bay leaves); bring to boil. Cover, reduce heat, and simmer 40 minutes or until potato is tender, stirring occasionally.
Stir in olives; cook an additional 5 minutes. Discard thyme and bay leaves.