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Outburst of coal and gas is a major hazard in underground coal mining where coal seam gas content/pressure is high. A cone‐shaped cavity is often observed in the coal seam after bursting, implying the likely mechanical structure being formed during outburst propagation. Although the mechanism for outburst initiation and propagation is very complex, mining‐induced fracturing and damage of the coal material is an essential component. This paper investigates the mechanical conditions that are essential to initiate fractures around a spherical cavity, a simplified form of the cone‐shaped outburst cavity. The cavity is assumed to be situated in an infinite isotropic homogeneous elastic body under internal gas pressure and far‐field hydrostatic compressive stresses as a further simplification for analytical investigation. The analytical conditions under which circumferential and radial fractures can initiate around the cavity are formulated, based on extensional strain criterion for fracture initiation. Low internal pressure on the cavity surface and high far‐field compression lead to circumferential fractures. In contrast, high internal pressure and low far‐field compression lead to radial fractures. Subsequent numerical simulations with FRACOD3D and FRACOD, the 3D and 2D in‐house fracture simulation codes, were carried out to investigate fracture patterns around a cavity and inclusion. The simulation results confirmed the analytical results, including fracture shapes and the size of fractured zone. These results provide a new angle to understand the complex mechanism of outbursts. [ABSTRACT FROM AUTHOR]