This paper presents finite-element simulation for hydraulic fracture's initiation, propagation, and sealing in the near wellbore region. A full fluid solid coupling module is developed by using pore pressure cohesive elements. The main objective of this study is to investigate the hypothesis of wellbore hoop stress increase by fracture sealing. Anisotropic stress state has been used with assignment of individual criteria for fracture initiation and propagation. Our results demonstrate that fracture sealing in “wellbore strengthening” cannot increase the wellbore hoop stress beyond its upper limit when no fractures exist. However, this will help to restore part or all of the wellbore hoop stress lost during fracture propagation.