Yes it will!
Photo - Video
The subject came up, because we use cooking oil to waterproof electronics: Will the wifi signal penetrate the oil?
I selected an Electric Imp for test subject, and it clearly worked.
It was a bit harder for it to find the wifi connection, so there is probably quite a bit of signal loss. But it worked!
You can monitor the wifi signal and actually use your log to see the value as you dip the imp into oil, or using a different container.
Just use this line in your “device” code:
server.log(format(“WiFi Signal: %d dBm”, imp.rssi()));
Today I redid the test, this time recording the wifi-strength using the method in the Electric Imp ide doing just that: imp.rssi() ( http://electricimp.com/docs/api/imp/rssi/ )
Here is a graph of the data - There is roughly a drop in signal strength of 10 dBm when the imp is dipped in oil.
To counter any errors from changing the position of the imp in the room influencing the wifi-strength, i had the imp hanging in a fixed position, and lifted the cup of oil up around it.
Another possible error/uncertainty in this is, that the antenna of the imp is hidden in the plastic container. Most likely the antenna does not get in direct contact with oil. There is most likely at least 1 mm of air/plastic between the antenna and the oil.
Btw, I have another series of experiments going, where I dip electronics in acid… I do not expect the Imp to live well through that. (None has, so far) 
Kind regards
Christian
Interesting stuff. You might want to also look at imp002. You have access to the antenna.
Destroying in acid? Thanks for taking one for the team.
I will surely get some imp002s next time I order a batch of imps.
The aim of the acid in not immediate destruction, but more accelerated decay. 
So far I have had good times with an Attiny85 in Vinegar
(Calling myself an artist is the perfect excuse for doing all kind of strange experiments with electronics )
