In the full plot of Diamonds Are Forever, James Bond kills a Blofeld double, goes undercover as diamond smuggler Peter Franks, and stops Ernst Stavro Blofeld using a diamond-powered laser satellite from an oil rig off Baja California. Spoilers follow, so skip ahead if you have not seen it.
The film opens with Bond tracking down Blofeld, who has been using lookalikes. Bond kills a Blofeld lookalike in the opening, but the real Blofeld is still alive. M then sends him to look into a diamond smuggling pipeline, because someone seems to be hoarding South African stones. Two odd assassins, Mr. Wint and Mr. Kidd, are killing the people along that pipeline, so the job has a body count before Bond even lands.
In Amsterdam, Bond takes the place of the smuggler Peter Franks, kills the real Franks and fakes his own death. He and Tiffany Case hide the diamonds in Franks's corpse and send it to Los Angeles. This is the cleanest trick in the film: the courier is the cargo. In Las Vegas the diamonds pass through a funeral home to the smuggler Shady Tree. Wint and Kidd try to cremate Bond alive, but he survives because the diamonds in play are fakes that Bond and the CIA planted.
Bond then follows the real stones to a lab owned by the reclusive tycoon Willard Whyte and learns that they are being used to build a laser satellite. He finds that Blofeld has taken over Whyte's business, and he is trapped and left for dead in a pipeline, but he escapes. Bond rescues Whyte, and Blofeld has Tiffany kidnapped.
By now the satellite is already in orbit. Blofeld uses it to destroy nuclear weapons sites and then offers the world's powers a chance to bid for it. Whyte points Bond to Blofeld's base on an oil rig off Baja California. The CIA attacks by helicopter while Bond wrecks the control room with the rig's crane, and Blofeld's escape in his mini submarine ends in his apparent death.
On a ship home to Britain, Bond and Tiffany are served dinner by Wint and Kidd, who are disguised as waiters and have hidden a bomb. Bond turns the tables and sends both men overboard, and the bomb goes off.