C standard compliance follows the "as-if" rule, by which the compiler can generate any code that behaves "as if" it was running your actual instructions on the abstract machine. Since not performing any operations has the same observable behaviour "as if" you did perform the loop, it's entirely permissible to not generate code for it.
In other words, the time something takes to compute on a real machine is not part of the "observable" behaviour of your program, it is merely a phenomenon of a particular implementation.
The situation is different for volatile
variables, since accessing a volatile counts as an "observable" effect.