In a small saucepan over medium high heat, combine the olive oil, whole garlic cloves, crushed red pepper flakes, sliced shallot and thyme. Cook until the garlic starts to sizzle, about 1-2 minutes, then reduce heat to low and continue to cook for 20 minutes. Remove pan from heat and let steep for 1 hour. Pour oil mixture over olives and stir to coat. Marinate at room temperature for 3-4 hours, or cover and chill up to 4 days.