Disking is a process designed to cut brittle plates and rods. In axisymmetric disking, a pre-cracked cylindrical rod is placed in an elastic, annular sheath and the composite is subjected to biaxial fluid pressure. At a critical pressure the crack runs across the circular section of the rod producing a clean cut. A linear elastic fracture mechanics analysis is used to develop a fracture criterion for the process. A concentric circular cylinders model is assumed with perfect bonding at the interface. The flaw that initiates fracture in the rod is modeled as an annular crack perpendicular to the interface with one crack tip at the interface. The problem is formulated as a singular integral equation of the first kind with a Cauchy type kernel. The stress intensity factors are determined as a function of crack size and shear moduli.