In a blender, combine cilantro, parsley, onion, garlic, and 1 3/4 cups water. Season with salt and pepper and blend until smooth, 15 seconds.

In a medium saucepan, heat oil over medium-high. Add rice and stir to coat. Add herb mixture and bring to a boil. Reduce to a simmer, cover, and cook until water is absorbed, about 15 minutes. Remove pan from heat and let sit, covered, 5 minutes. Add lime juice and fluff with a fork. Serve rice with lime wedges if desired.