Hydrogen embrittlement of nuclear fuel cladding tubes, consisting of zirconium alloys, can be a critical aspect as it can affect the integrity of fuel rods during and particularly after their operation in the reactor. The hydrogen precipitation and morphology of hydrides in cladding tubes has been extensively investigated in the past. Understanding the hydrogen diffusion and hydrides precipitation mechanisms is crucial for assessing a potential impact on the mechanical properties of the cladding, especially in the context of intermediate dry storage. During dry storage, radial hydride precipitation can be triggered in the cladding due to the combined effect of slow cooling from higher temperatures originating from decay heat, and the internal pressure induced by gaseous fission products. It is well-established that radial hydrides may affect the ductility and strength of the cladding, potentially putting the integrity at risk. To analyse the conditions for the formation of radial hydrides, C-shape compression test (CCT) samples were cut out from hydrogenated Zircaloy-4 (without liner) and DX D4 (with outer liner) cladding samples and thermo-mechanically tested. Using CCT samples is an efficient method for the analysis of stress induced hydrogen diffusion and directional hydrides precipitation. Using neutron radiography imaging, the hydrogen and hydrides distribution along the cladding wall were assessed. A pronounced presence of circumferential hydride packages was revealed in the most of the CCT samples. Radial hydrides were visible in the Zircaloy-4 samples, while the DX D4 samples showed significant hydride accumulation at the substrate-liner interface, being at the outer, positively stressed side of the sample, but without relevant hydrides reorientation. The DX D4 results suggest that hydrogen prefers regions of both, tensile stress and existing hydrides, enhancing its diffusion.