A characterization method for fracture dynamic closure considering influence of stress state in three-dimensional space is proposed based on an embedded discrete fracture model. Aperture and permeability of fractures in any direction are considered as functions of normal effective stress acting on the fracture surface. Meanwhile, the change of fracture conductivity is used to characterize dynamic closing behavior of proppant-filled hydraulic fractures and opened natural fractures due to the decrease of formation fluid pressure during reservoir development. It shows that the development of tight oil reservoirs is dominated by "fracture-controlled reserves". In evaluating productivity of fractured horizontal wells, the dynamic closure of fractures lead to a partial loss of production, and its influence can not be ignored. Proppant material properties of hydraulic fractures, and stiffness of natural fractures are the main controlling factors. To minimize adverse impact of fracture closure on production it is necessary to increase the concentration and particle size of proppant and improve proppant properties.